Ethereum Struggling Against Bitcoin, Solana But A Reversal May Be On The Way

Ethereum ETH/USD is down 15% over the past 30 days, but on-chain data and technical analysis suggests its period of underperformance may soon be over.

What Happened: On-chain data provider Cryptoquant on Monday suggested that Ethereum's market shakeout will lead to a bullish rebound. New data from the futures market shows that significant liquidations of long positions, those betting on a price rise, during bull markets often a precede price rallies. This occurs as the futures market stabilizes and spot buying pressure begins to dominate.

The recent downturn triggered a wave of long liquidations, reaching levels not seen since November 2022. With the futures market potentially reset, there's room for renewed interest. If demand picks up, Ethereum could be on the verge of an impulsive bullish surge, the data provider implied.

Also Read: EXCLUSIVE: Bitcoin Crashes 17%, Ethereum Plummets 23% — Is The Crypto Bear Market Here?

What Traders Think: Crypto trader DonAlt thinks the Ethereum chart looks interesting for the first time in a while. However, another trader sees Ethereum struggling against the competition from Bitcoin, Solana and emerging layer-one technologies. The recent announcement of a Bitcoin strategic reserve by former President Donald Trump has drawn significant institutional attention away from Ethereum.

The trader thinks smart money is reevaluating alternative blockchains based on key metrics like Miner Extractable Value (MEV) and decentralized exchange (DEX) volume. Retail investors, meanwhile, are increasingly focused on hunting for the next big meme coin, often ignoring Ethereum in favour of smaller, high-risk plays that promise quick returns.

What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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