Cryptocurrency Ethereum (CRYPTO:ETH) has shown a weak performance in 2024, affecting bullish expectations.
What happened
According to CriptoNoticias, Ethereum — the second largest crypto asset by market capitalization after Bitcoin (CRYPTO:BTC) — is up just 4% in 2024, while BTC is up 34%. ETH is currently trading 51% below its all-time high of $4,900 reached in 2021.
The probability of ETH surpassing $10,000 in 2024 has decreased from 18% to 5% in three months, according to bettors on PolymarketEthereum ETFs in the US have seen constant capital outflows, putting downward pressure on their price.
Alex Thornhead of research at Galaxycommented that there is “very little interest in these products.” Ethereum ETFs trade with significantly lower volume than Bitcoin ETFs.
The trader known as Eljaboom He noted that ETH is still trading above the 50-month exponential moving average, a key support level. However, he does not expect a bullish breakout before Q4 2024.
$ETH is still trading above EMA 50 support level
Price capitulation has happened ✅
Now, the boring phase is going on where price keeps trading within a certain range
I’m still convinced of no breakout before Q4 pic.twitter.com/udYwi5uuvf
— Elja (@Eljaboom) August 28, 2024
There are expectations of a rebound in the cryptoasset market towards the end of 2024, driven by interest rate cuts in the US and the economic recovery in the fall.
You can also read: Polygon revolutionizes its network with the new POL token and more surprises on the way
Why is it important?
The recent evaluation of Coinbase Global Inc (NASDAQ:COIN) on Ethereum’s inflation rate highlights that while inflation varies, other factors such as staking play a crucial role in ETH’s economy. Since the launch of the Ethereum network, Beaconstaking has grown to 34 million ETH, representing 28% of the total supply.
Besides, Kyle Samanimanaging partner of Multicoin Capitalhas noted that Ethereum has underperformed compared to competitors such as Solarium (CRYPTO:SOL).
In an interview with the podcast BanklessSamani attributed ETH’s poor performance to its volatility, arguing that this makes it unsuitable for everyday transactions or long-term contracts.
You can also read: Ibex 35 under pressure: Will it fall below 11,000 points?
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