‘Revenge of the ETH’ — Is Ethereum’s 9% jump the start of something big?
After being drastically outperformed by Solana ( SOL ) for the past three months, the price of Ether ( ETH ) suddenly spiked 8.9% in the last 24 hours, leading to some bullish sentiment returning to Ethereum.
“The revenge of the ETH is starting,” wrote Jordi Alexander, the chief investment officer at Selini Capital, in a Dec. 27 post to X (formerly Twitter).
'The Revenge of The $ETH ' is starting.
— Jordi Alexander (@gametheorizing) December 27, 2023
Everything has lined up, it will now run for weeks.
Alts ran; Saylor fired his clip; Eth ETF next up.
The risk/reward on Ether is so compelling here, that I see a liquidity black hole now forming in January.
"Imajin being bearish ETH".. pic.twitter.com/pfy9MJ9Em5
Alexander pointed to a recent rally across several altcoins and Michael Saylor buying another $615 million worth of Bitcoin on Dec. 26 as solid foundations for ETH to make an upside move over the next few weeks.
“The risk/reward on Ether is so compelling here, that I see a liquidity black hole now forming in January,” he added.
Pseudonymous trader Pentoshi added his bullish target for Ether, posting a semi-cryptic chart to X with an approximate price target of $3,485.
$ETH
— Pentoshi euroPeng (@Pentosh1) December 27, 2023
slowly, then all at once. It's building https://t.co/ReE3TGLtBz pic.twitter.com/554SAPk4PC
“Slowly, then all at once,” he added.
The conflict between community members from the Solana and Ethereum ecosystems reached a fever pitch over the last few weeks.
While Ether has gained 102% year-to-date, its price performance has been dwarfed by that of Solana, which has posted a whopping 951% gain since the beginning of this year, per TradingView data .
Ether’s 102% gain was dwarfed by Solana’s staggering 951% year-to-date rally. Source: TradingView
This outsized price performance, along with a tidal wave of relative on-chain activity, led many to assert that the networks’ lower fees and faster settlement times made it the superior blockchain when compared to Ethereum.
Related: Does Bitcoin's dominance drop hint at full-blown altcoin season?
On the other hand, Ethereum backers claimed that the networks’ architecture was more suited to larger entities conducting business on-chain and pointed to layer-2 scaling solutions like Optimism and Arbitrum as examples of cheaper fees on ETH.
Respectfully this is false. @arbitrum is just as cheap and fast as Solana in every meaningful way. @0xPolygonLabs is insanely cheap and fast with more mature ecosystem. Plus has the single best vision for scaling in the space with their unified liquidity. @base is cheap and… https://t.co/upwhlHbfxx
— Jesse Eckel (@Jesseeckel) December 24, 2023
At the time of publication, ETH is changing hands for $2,417, up 8.9% in the last 24 hours. Meanwhile, Solana has taken a breather from its recent upward tear, trading at $104 — a loss of 4.2% in the last day.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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