Reaching the bottom in November 2022 after FTX’s bankruptcy Bitcoin It has been performing tremendously since 2023.

BTCWhile , has increased by approximately 270% since January 2023, the largest altcoin Ethereum (ETH) It has a weaker performance compared to Bitcoin. Because, ETH has increased by 160% since January 2023.

Evaluating this weak performance of Ethereum, 10X Research founder Markus Thielen said: “ETH’s weak fundamentals become a hurdle for Bitcoin as it hinders large-scale fiat flows into the crypto ecosystem.” said.

Arguing that ETH is the “basket case” of this bull cycle, that is, the dysfunctional and ineffective crypto, Thielen said that ETH also affects BTC and other altcoins due to its weak fundamentals.

Here, the analyst points out that Ethereum showed a tremendous performance in the 2020/2021 cycle. ETHHe said that is a guide.

Stating that this cycle is different from the 2020/2021 cycle due to the weak fundamentals of ETH, the analyst stated that there may be a further decline in the price of ETH.

“Ethereum remains the basket case of the current cycle. Surprisingly, BTC and ETH have a high correlation of 95%.

However, Ethereum’s weak fundamentals are becoming a hurdle for Bitcoin as it hinders large-scale money flows into the cryptocurrency market.

In the last 2020/2021 cycle, ETH was the driver as Ethereum was expected to replace the legacy banking system, but Ethereum developers did not react quickly enough. And this failure has caused ETH to remain weak against Bitcoin this cycle.

The weakness of ETH negatively affects the course of Bitcoin due to the high correlation between BTC / ETH. Moreover, weak fundamentals also bring disaster to the Ethereum ecosystem.

The lack of money inflow from ETH is also a reason why the Ethereum price has fallen more sharply than Bitcoin. In addition, FTX’s transfers are also effective in the decrease of ETH.”

What Awaits Ethereum?

EthereumIn the face of ‘s weak performance against Bitcoin, market analysts other than Markus Thielen also expect a decrease in the price. Because analysts, ETHHe thinks that if ETH cannot hold the critical $ 3,100 level, the decline may continue and ETH may fall to $ 2,900.

However, analysts believe that the downtrend may end if ETH manages to stay above $3,100.

Ethereum At the time of writing, it continues to trade at $ 3,070.

*This is not investment advice.

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