Hello everyone, I believe you all have seen the market. About 5 hours ago. The market started a downtrend and things are continuing still. Everything started when Bitcoin was on its way to 100,000 he made and then bounced off that psychological resistance and has been in freefall since. And subsequently all the other coins including Ethereum and other populating altcoins have followed suit. And behind those are all the meme coins under those chains. The whole cryptocurrency market cap is going downward now. But I want to talk about something different. I wanted to talk about why Ethereum is not performing the way it should be and whether it can regain momentum compared to BTC anytime soon. So there are a few reasons that I found to be responsible for Ethereum to underperform.
Well the first reason is the same old psychological resistance. As 100,000 was the cyclical resistance for Bitcoin, 4,000 was the psychological resistance for Ethereum. So when it actually reached 4,000, many tried to sell their positions because at $4,000 Ethereum was profitable for everyone. So many actually sold. The only good thing was that supposedly they were not mostly long-term holders rather the normal traders who sold their positions. Due to the sale the price decreased and the liquidity of Ethereum in the market increased. Now many have wondered whether if you remember actually rise up to those numbers again. For them I would like to address that the groundwork is already there. We know that Ethereum is now more scalable and it is more efficient and faster since the upgrade last year. And throughout the same year there was a good amount of layer 2 adoption. And we know layer 2 is led by Ethereum. And we can see that institutional investors are now buying more Ethereum than ever. Along with it, the spot Ethereum ETF has also provided some machine needed liquidity to the coin. Arthur, so gather and make Ethereum a better perspective. Tennessee institutional buyers are just getting in, The foundation is getting stronger. Also, we are yet to have those crypto lenient regulations from Donald Trump. Many are skeptical about that and for the same reason the market is stagnant. Once those regulations get in, The market is expected to rally, especially makeup for the lost value during the ongoing tariff crisis. There was also another upgrade coming for Ethereum which will make it more secure and efficient. Making it more available for institutions and businesses. So Ethereum isn't over yet.
The biggest reason actually for Ethereum to underperform compared to bitcoin is people are just holding on to their bitcoins. Well, people who have Ethereum are selling their Ethereum when they are getting a profit. They're treating Ethereum like an altcoin so it is getting the altcoin treatment.
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