Ethereum (ETH) Becomes the Worst Performer Among the Top Largest Cryptocurrencies, Prominent Analyst Duo Nine Expresses Serious Concerns
- PHPzOriginal
- 2024-08-09 21:05:26553browse
Among the top largest cryptocurrencies, Ethereum (ETH) was the worst performer on this stage, with the asset losing around 24% of its value over the
Ethereum (ETH) performed poorly among the top cryptocurrencies this week, losing around 24% of its value compared to its peers.
This poor performance was also evident in ETH's daily performance, which saw a 3.9% drop.
Duo Nine, a prominent cryptocurrency analyst, expressed concerns about Ethereum's trajectory, suggesting that the platform may be “slowly dying.”
According to Duo Nine, Ethereum's underperformance, especially in relation to Bitcoin and Solana, raises questions about its future sustainability.
“When both Bitcoin and Solana outperform Ethereum, you have to start asking some tough questions,” Duo Nine remarked, highlighting a trend that has left many Ethereum enthusiasts and developers losing confidence in the asset.
The analyst attributes part of Ethereum's struggles to the “XLM curse” — a scenario where a network's efficiency and cost-effectiveness fail to translate into increased token value.
“If your network is fast and inexpensive, there's no reason for your token to surge in value,” he explained.
The arrival of Layer 2 solutions like Arbitrum has drastically reduced transaction costs. While this may be advantageous from a technical perspective, it could have a negative impact on ETH's market price.
The reduced demand for ETH as a gas token may diminish its significance and value.
Additionally, Duo Nine criticizes Ethereum's economic model, pointing out that the platform now has an inflationary token supply, allegedly to cover operational costs that transaction fees alone can no longer meet.
However, despite this setback, ETH's price is still on track to retest the $2,600 resistance level after briefly pulling back to gather liquidity at the $2,330 support.
Multiple indicators, including the Moving Average Convergence Divergence (MACD), suggest a bullish outlook for the upcoming week.
According to this Ethereum price prediction, if the resistance at $2,600 is broken, Ether could advance significantly toward the $3,000 mark.
Along with the support at $2,330, the 20-day Exponential Moving Average (EMA) provides additional short-term reinforcement at $2,505.
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