Ethereum (ETH), the second largest cryptocurrency by market capitalization, has historically been overshadowed by Bitcoin (BTC). However, a recent analysis by DonAlt, an analyst renowned for his accurate forecasts, indicates that the altcoin has great potential to surprise investors.
In a recent video on his YouTube channel, TechnicalRoundup, DonAlt stated that Ethereum has been unfairly underestimated due to its recent performance. Although price drops have caused many investors to lose confidence, the analyst believes that the cryptocurrency still has significant appreciation potential.
Why does DonAlt believe that people underestimate Ethereum?
The analyst compared the current situation of Ethereum to that of Solana when its price fell below double digits. At that stage, many viewed it as a failed cryptocurrency, but later, Solana went from nearly zero to reach $250.
This analogy reflects DonAlt's optimistic outlook on the asset's future, despite the recent unfavorable price action.
People constantly joked about Solana when it was trading below double digits, and then it went from zero to nearly $250. I think ETH is in a similar situation, but obviously, Solana is taking some of ETH's supply, DonAlt explained to his 66,300 subscribers on YouTube.
Furthermore, Ethereum faces competition from other cryptocurrencies, such as Solana, which is gaining traction in the ecosystem. However, the analyst believes that the asset remains one of the top long-term options, just behind Bitcoin.
Although the main altcoin is not currently the best-performing asset, its potential for recovery may make it an attractive investment in the future.
From a technical perspective, Ethereum shows signs of recovery. The ETH/BTC pair, one of the most relevant for assessing its performance relative to Bitcoin, maintains key support levels on the weekly chart. This support suggests that the asset may be in a favorable position for a bullish breakout in the near future.
Looking at ETH'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 retraced the 2020 move, which is quite significant. […] Obviously, it's not great. But it's not the worst. If I had to choose a long-term crypto asset, besides Bitcoin, it would still be ETH,” said the analyst.
Performance of the ETH/BTC pair. Source: TradingView
ETH maintains solid long-term performance
In 2020, Ethereum went through a retracement in its movement, which, according to the analyst, may be a positive sign that the cryptocurrency is accumulating strength for a new upward push.
The analyst also noted that although ETH has lost ground relative to Bitcoin, the altcoin continues to show solid long-term performance, remaining one of the top choices for investors seeking assets with strong potential in the future.
In summary, although it has been underestimated by many recently due to its market performance, its long-term growth potential remains strong.
Technical indicators and the context of cryptocurrency adoption suggest that Ethereum could surprise investors in the coming years, becoming one of the most prominent assets in the cryptocurrency market.
According to data from BeInCrypto, Ethereum is trading at $1,847.28 after increasing 2.09% in the last week. However, the main altcoin is 62% below its all-time high of $4,878.26 recorded in November 2021.
The article Analyst predicts recovery of Ethereum (ETH) despite recent performance was first seen on BeInCrypto Brazil.
