Ethereum hasn’t been all too well as of late. If you’ve perused the pertinent articles on this outlet, we’re sure you know that.
For those unaware, here’s a brief recap. Every since early-2018, Ethereum and its ilk have been dramatically underperforming Bitcoin. In fact, since the top of altcoin mania in 2018, Bitcoin dominance has doubled, moving from 32% to 69%. The performance (or lack thereof) of Ethereum specifically seems to stem from the lack of buying pressure from ICO participants, as projects are moving away from this form of fundraising to avoid regulatory scrutiny.
Ethereum has been doing so poorly that its share of the cryptocurrency market recently collapsed under 8%. In fact, as of the time of Stop and Decrypt’s tweet seen below, dominance for the second largest crypto asset sat at 7.84%, the lowest it has been in some two years.
But, it may be about to get much much worse for the cryptocurrency. No joke.
As Crypto Rand, a well-followed trader and analyst that called a number of the key Bitcoin breakouts this year, recently pointed out, Ethereum against the U.S. Dollar is currently facing a key “yearly uptrend support”. More specifically, ETH is currently tracing a trend line that it has flirted with on five or six separate occasions since bottoming in December.
Rand claims that should ETH lose this level, which currently sits at just over $200, “death” may follow. Death is, of course, quite a nebulous comment. But considering the apparent importance of the line, a violation of the trend could result in a violent collapse.
It is important to note that Bitcoin rallying from here would likely help Ethereum stave off any violent collapse, as altcoins, after all, somewhat trace the market leader.
Not All Bad News Bears
While there is a clear bear case, many analysts are actually starting to flip bullish on Ethereum, at least in regards to its potential performance against Bitcoin.
Popular industry analyst Galaxy recently pointed out that the ETH/BTC chart currently looks as it did prior to 2017’s absolute explosion, during which the asset rallied to over 0.1 BTC. DonAlt has echoed this analysis, claiming that should a fractal play out, Ethereum may fall another 20% against BTC before potentially skyrocketing to new heights over the next year or so.
Fundamentals of Ethereum may be supportive of such a surge. Q2 saw Ethereum-based stablecoins transact more value than Venmo. Also, Ethereum miners took less than 1% of the fees that Venmo took, accentuating the need for decentralized money and blockchain technologies. In a similar strain of news, DeFi and DEXs have seen a large uptick in usage over the past few months.