Coinburow’s Gei Turner is bearish on Ethereum (ETH) as its second-largest cryptocurrency was about 58% below its all-time high price in November 2021.
In a new video, Turner tells the 2.66 million subscribers of the Coin Bureau YouTube channel that it has fallen below Bitcoin (BTC) over the past few months despite expectations that ETH will follow the lead and rally of flagship Crypto Asset.
“Ethereum’s performance is so poor that it’s basically a meme, but BTC has gathered at the newest ever…
ETH has not recovered about $4,900 from its 2021 high. In fact, Ethereum is one of the only major altcoins that we have not experienced a price movement to get excited about. During this cycle, ETH prices have struggled to surpass the major resistance level of $4,000, significantly lower than previous all-time highs…
To make sure Ethereum has been bleeding against Bitcoin since September 2022, we just look at the price of ETH against BTC, and the signs are not slowing down. Overall, it doesn’t look good, companion. ”
Ethereum is trading at $2,066 at the time of writing.
According to Turner, competition in and out of the ecosystem is one of the reasons Ethereum is poorly performing.
“In many people’s eyes, the biggest thing that hurts ETH prices is the huge number of Layer 2 within the Ethereum ecosystem…
…Many believe that liquidity fragmentation is the biggest reason for ETH prices to perform poorly. And Layer-2 definitely stole some of the venture capitalist shares…
… Another challenge for Ethereum – it is the growing competition with the aforementioned Ethereum murderers. For those who are not aware, these are smart contract blockchains that threaten Ethereum’s control by effectively providing an alternative to Ethereum. Currently, some of the major Ethereum killers by market capitalization include Solana, BNB Chain, Aptos, Avalanche, and SUI. ”
Turner further says the macroeconomic landscape is also having a negative impact on Ethereum prices.
“One other big challenge comes from the macro environment, especially high interest rates, because higher interest rates are reflected in government bonds and are popular among institutional investors.
…The US government bond yields are 4.28%. Meanwhile, Eth Staking offers a return of just 3%. This means that institutional investors who love to acquire consistent yields tend to stick to government bonds as a result. ”
https://www.youtube.com/watch? v = qw6nbigagqq?
Generated Image: Midjourney
