A fall for the Ethereum (ETH) price is continuing to occur, and not just against its dollar pair, but also against Bitcoin (BTC), and its layer 1 competitors. Is this the end for Ethereum, or is there a way back for the number 2 cryptocurrency by market cap?
ETH/USD at point of no return
Source: TradingView
In the weekly chart for $ETH, it can be seen that the price has now potentially come down to the point of no return. The very strong horizontal support is coinciding with the bull market ascending trendline. If the price breaks down and confirms below these two, then a cascade of selling could possibly end the bull market for $ETH.
However, it is too early to jump the gun just yet. The price is indeed still holding the line. Also, if one looks at the two indicators at the bottom of the chart, it can be noted that both are near the bottom, and so an upturn will come at some point.
While the Stochastic RSI is currently presenting a bullish cross up, the Relative Strength Index indicator line is at its lowest point since June 2022. Taking these two indicators into account, at least as regards the ETH/USDT price, a bounce does look the more likely option, although a weekly candle wick down below $1,800 could scare off some of the bullish longs.
A never-ending downtrend for $ETH against $BTC
Source: TradingView
The ETH/BTC chart is also grim viewing. The present downtrend is in effect since December 2021, and $ETH looks to be in the last-chance saloon at the 0.0222 major horizontal support level. Even if a bounce does take place from here, the bull market trendline, plus other major horizontal levels, are likely to provide tough resistances.
In favour of the $ETH bulls are once again the two major indicators at the bottom of the chart. They are both pointing to a bounce in favour of $ETH, but if one looks at previous cross-ups, these were always fairly short-lived.
$SOL in pronounced uptrend against $ETH
Source: TradingView
Finally, if one compares $ETH to its $SOL pair (SOL/ETH), arguably its major layer 1 competitor, it can be noted that $SOL is most definitely in a pronounced uptrend. The higher highs and higher lows have continued to be made, and it doesn’t look like there is too much sign of this coming to an end any time soon.
The weekly Stochastic RSI at the bottom of the chart is showing a cross up, so we can perhaps expect $SOL to climb higher at the expense of $ETH.
Will a ‘flippening’ eventually take place?
All in all, things are not looking good for Ethereum going forward into the rest of this bull market. Its layer two solutions are just not cutting it, and could be seen as just another layer of friction. Newer technologies such as Solana and Sui are doing everything within their layer 1, and this gives them immense advantages of speed and cheapness of transactions over Ethereum. Will a ‘flippening’ eventually take place?
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.