- Ethereum hit bottom at $3,118 earlier today, hitting a five-month low.
- Based on Santiment data, the ratio of active Ethereum addresses vs. price implies a bullish narrative.
- Analysts at JP Morgan believe that Ethereum faces stiff competition from DeFi to maintain its dominance in the ecosystem.
Ethereum price dropped to a five-month low earlier today. Proponents believe that Ethereum’s dominance in the crypto ecosystem has dropped.
Ethereum bears push the altcoin’s price lower
Ethereum price dropped below $3,118 as bears took over the altcoin. Ethereum price hit a new five-month low. Though the altcoin’s market capitalization exploded in 2022, analysts have predicted that Ethereum’s dominance in the market could shrink this year.
According to the average market value to realized value (MVRV), the current price is the most pain that Ethereum traders have felt since July 2021. The metric is obtained by dividing an asset’s market capitalization by realized cap. Average MVRV implies a bullish outlook on Ethereum price.
Ethereum’s average MVRV
Analysts at JP Morgan believe that Ethereum is competing with DeFi protocols to maintain its dominance. The leader in financial services believes that a delay in sharding could make it challenging for Ethereum to compete with DeFi projects in the future.
Ethereum has a strong network of developers and contributors that offer the altcoin a solid foundation to drive adoption and utility. However, there is a spike in competition from DeFi projects and Ethereum-killers with their rising on-chain activity and active users.
@ChartSimpson, a crypto analyst and trader, believes that Ethereum was oversold since the crypto market bloodbath that followed the Covid crisis in 2020.
$ETH has not been this oversold on the daily RSI since the March 2020 Covid crash.
— Chart Simpson (@ChartSimpson) January 7, 2022
FXStreet analysts believe that Ethereum is in the ideal bearish Ichimoku breakout.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top gainers Virtuals Protocol, Floki, Hyperliquid: Altcoins extend gains alongside Bitcoin
The cryptocurrency market sustains a market-wide bullish outlook at the time of writing on Tuesday, led by Bitcoin (BTC) and select altcoins, including Virtuals Protocol (VIRTUAL), Floki, and Hyperliquid (HYPE).
Token unlocks over $625 million this week across major projects SUI, OP, SOL, AVAX and DOGE
According to Wu Blockchain, 11 altcoins with one-time tokens unlock more than $5 million each in the next seven days. The total value of cliff and linear unlocked tokens exceeds $625 million.
TRUMP meme coin on-chain activity surged following dinner announcement: Kaiko
Kaiko Research published a report on Monday highlighting the significant impact of TRUMP's team dinner announcement on the meme coin sector. The announcement triggered a surge in on-chain activity and trading volumes, with TRUMP accounting for nearly 50% of all meme coin trading volume.
Coinbase launches new Bitcoin Yield Fund, offering investors 4–8% annual returns
Coinbase has launched a Bitcoin Yield Fund, aiming to offer non-U.S. investors sustainable 4–8% returns paid directly in Bitcoin.
Bitcoin Weekly Forecast: BTC consolidates after posting over 10% weekly surge
Bitcoin (BTC) price is consolidating around $94,000 at the time of writing on Friday, holding onto the recent 10% increase seen earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.