"People underestimate Ethereum, but I would choose it for the long term," warns the analyst.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, had previously outperformed Bitcoin (BTC). However, recent analysis by DonAlt, an analyst known for his accurate predictions, suggests that ETH has the potential to surprise investors.
In a recent video on his YouTube channel, TechnicalRoundup, DonAlt explained that Ethereum has been unfairly undervalued due to its recent market performance. Despite the price drop, which has caused many investors to lose confidence, the analyst believes that the cryptocurrency still has significant potential.
Why does DonAlt believe that Ethereum is undervalued?
DonAlt compared the current situation of Ethereum to what Solana faced when its price dropped below double digits. At that time, many considered it a failed cryptocurrency, but Solana then surged from almost zero to $250.
This measurement reflects DonAlt's optimistic view of Ethereum's future, despite the recent weak price action.
People constantly mocked Solana when its price was trading in double digits, then it went from zero to around $250. I believe Ethereum is in a similar position, but clearly Solana is taking some of Ethereum's supply, as DonAlt explained to his 66,300 subscribers on YouTube.
Additionally, Ethereum faces competition from other cryptocurrencies, such as Solana, which is gaining ground in the ecosystem. However, the analyst believes that ETH remains the best option in the long term, right after Bitcoin.
Although Ethereum is not the best-performing asset at the moment, its recovery potential may make it an attractive investment in the future.
From a technical standpoint, the Ethereum currency shows signs of recovery. The ETH/BTC pair, one of the most important pairs for assessing Ethereum's performance against Bitcoin, maintains key support levels on the weekly chart.
This support indicates that ETH may be well-positioned for a bullish breakout in the near future.
Considering Ethereum's price history, it is still trading at higher multiples than Bitcoin in 2015. It is also trading at higher multiples than in 2017. It reversed its trend in 2020, which is critical. [...] Clearly, it's not great. But it's not the worst. If I had to choose among long-term digital assets other than Bitcoin, Ethereum would be the optimal choice," concluded the analyst.
ETH maintains strong long-term performance.
According to DonAlt, Ethereum's current multiples are even higher than Bitcoin's multiples in 2015, indicating that despite ETH's recent weak performance, its valuation remains attractive compared to the past.
In 2020, Ethereum experienced a decline in its movement, which is considered, according to the analyst, a positive sign that the cryptocurrency may gain momentum for a new upward thrust.
The analyst also confirmed that although ETH has lost ground against Bitcoin, it still maintains strong long-term performance. Ethereum remains one of the most important options for investors looking for assets with strong long-term potential.
In short, although many have underestimated Ethereum recently due to its market performance, its long-term growth potential remains strong.
Technical indicators and the cryptocurrency adoption landscape suggest that Ethereum may surprise investors in the coming years, becoming one of the standout assets in the cryptocurrency market.
According to data, Ethereum is trading at $1,847.28 after rising 2.8% in the last 24 hours and 16.6% in the last 14 days. However, the leading altcoin is still 62% lower than its all-time high of $4,878.26 recorded in November 2021.
$ETH ETH
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