Why Betting Against Ethereum Now Could Be a Mistake
Why Betting Against Ethereum Now Could Be a MistakeEthereum, the second-largest cryptocurrency by market cap, has been facing pressure recently. Over the past six weeks, it has fallen by 18% against Bitcoin. But despite this drop, crypto analyst Merlijn believes it’s too early to count Ethereum out. History shows that Ethereum could be on track for a strong recovery.Ethereum’s Key Support ZoneMerlijn The Trader notes that the ETH/BTC chart has shown a steady decline over the last six weeks. However, Ethereum is now testing an important support zone, one that has often marked the start of a recovery in the past. This zone, highlighted in green on Merlijn’s chart, could be a key factor in Ethereum’s potential bounce-back.Although the short-term trend might look negative, Merlijn points out that Ethereum still has strong momentum behind it.The Current Dip: Just Part of the Cycle?The current drop in the ETH/BTC ratio is not unusual, with many analysts seeing it as part of a normal market correction. This could set the stage for Ethereum’s next big rally. Right now, the ETH/BTC ratio sits at 0.03347, a 17% drop since December. However, history suggests this may not be as bad as it seems.In 2021, the ratio fell to a similar level of 0.03 before soaring to 0.077 in just two months. During that period, Ethereum’s price surged by 111%, reaching $3,800.Bitcoin’s Rally: Could Ethereum Get a Boost?Bitcoin’s recent rise to $100,000 has dominated the news, but some analysts believe Ethereum could also benefit. Thomas Fahrer, co-founder of Apollo, suggests that the wider adoption of Bitcoin could help push Ethereum’s price higher, possibly to $4,000. If this momentum continues, Ethereum could follow Bitcoin’s lead in this market cycle.If we get the Strategic Reserve, Bitcoin could challenge $1M this cycle. Would be bullish for ETH, too. 4K is in play— Thomas | heyapollo.com (@thomas_fahrer) January 16, 2025Tough Time Ahead for Ethereum?Despite the potential for growth, Ethereum still faces challenges. It recently dropped below the key $3,500 support level and is currently trading at $3,421. Moreover, the much-anticipated Ethereum Merge, which was expected to make Ether deflationary, hasn’t yet produced the results many hoped for.Merlijn’s message is clear: now is not the time to underestimate Ethereum. With the possibility of a recovery ahead, missing out on its future potential could be a big mistake.With market cycles ever-changing, Ethereum’s story is one of both struggle and potential—its next chapter may be more interesting than we expect. We'd Love to Hear Your Thoughts on This Article!Was this writing helpful?