ETH, native to the Ethereum network, reportedly underperformed two of its competitors—SOL and BTC—in the recent cycle. Investors may have lost hope in Ether, according to speculation. This led to a decrease in the price, even though the market accommodated eleven ETF applications. The question is, if the trend is more obvious, and if so, will it continue to affect the price of the token?
Simply put, the ongoing fluctuation for ETH, or any other crypto for that matter, is temporary. Spot ETFs of Ether are performing below expectations, primarily because of macroeconomic factors, including, but not limited to, concerns about recession and inflation. Next, the Spot Bitcoin ETF has garnered significant attention due to its strong performance since January 2024 as a regulated cryptocurrency investment vehicle.
Spot Ether ETFs are yet to subside outflows of Grayscale and balance the total net flow against it.
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However, the absence of retail-friendly architecture and selling points is also a concern for ETH. As time progresses, the former is expected to experience an upgrade, while the latter will only undergo a change when the market recovers and tokens rebound. The crypto market is known for predictive movements. Ether is no different. This is valid in the sense that when one adds any cryptocurrency, the fundamentals remain the same, except for their respective values and future expectations.
Ether is experiencing a pull in terms of positioning. It has been de facto beta for natives to the crypto market. Winners, on the other hand, are those who placed their bets on ETHE during the ETF launch. Experts believe that most of the Open Interest has been washed.
The positioning of ETH has reached its lowest point due to the capitulation of large OG whales and negative sentiments surrounding the token itself.
For reference, ETH is exchanging hands at $2,669.82, up by 1.37% in the last 24 hours. The 14-day RSI is 41.96 for neutral sentiments, but green days have banked only 40% of the time in the last 30 days. The FGI stands at 34 points for fear sentiment, indicating that investors are taking a cautious stance. Interestingly, the SEC took a similar stance when approving Ether ETFs.
As for the competition with SOL, that could fade away later in the year. There was speculation that Solana would introduce its ETF into the market, but there is little to no evidence of this happening. This means that Solana will have to either wait longer or abandon its hopes of ever having a regulated investment product on the market.
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BTC will maintain a dominance of more than 50%. That is difficult to beat at the moment unless Ether not only meets near-term predictions but surpasses them with massive margins. There is still a chance for ETH to see a long-term structural shift.
