Has Ethereum really reached its end?

In the past, it stood shoulder to shoulder with Bitcoin, but now it seems like a side street. At the beginning of the year, it plummeted from 4000 to a low of 1000, which has completely shattered user sentiment. Historically, during Bitcoin's halving cycles, Ethereum's performance in the 12 months following Bitcoin's halving has usually outperformed Bitcoin. However, since Bitcoin's halving last April, it is the first time that Ethereum has failed to outperform Bitcoin.

Why is Ethereum so weak?

According to analysts, the main reason for Ethereum's poor performance stems from the tariff war initiated after President Trump took office and the persistent stubbornness of inflation in the U.S. This has driven investors to shift their assets toward more liquid and lower-risk assets, which is also why gold continues to set new highs.

In the cryptocurrency space, Bitcoin is undoubtedly the asset benchmark. With institutional investors entering the cryptocurrency market, Ethereum finds it increasingly difficult to compete with Bitcoin in terms of liquidity and risk. Even the funds that originally invested in Ethereum are gradually starting to shift towards Bitcoin.

Does Ethereum still have a chance to rebound?

Whether it's the analysts' reports or the community's responses, investors' confidence in Ethereum seems to have dropped to a freezing point. However, it's worth noting that Ethereum's official stance emphasizes that they care more about the long-term development of the network rather than short-term price fluctuations, which has led some to point out that the price of ETH may still rise again in the future.

For now, Ethereum does provide a good entry opportunity for spot trading, but for those mainly engaged in contracts, I would suggest shifting focus to Bitcoin, which might be a better choice.