Ethereum (ETH) has delivered a strong performance quite in tune with the Bitcoin performance. However, it has underperformed other Layer-1 competitors such as Solana, Polkadot, and Chainlink. This has led to a new debate about whether Ethereum is dead and what future it holds.
Ethereum’s Prominence Won’t Diminish
Crypto analyst Michael van de Poppe suggests that Ethereum’s prominence will not diminish but rather strengthen for several reasons:
- Ethereum’s transition from PoW to PoS has garnered attention, and its true impacts are yet to be fully realized. The coming year is expected to reveal the fundamental growth of the ecosystem, making Ethereum potentially deflationary and a more enticing investment than Bitcoin.
- Similar to Bitcoin, Ethereum is in the process of having a Spot ETF application, which, upon approval, could be more significant. This development opens doors for decentralized applications (dApps) built on Ethereum to be included in ETFs, potentially increasing its appeal.
- Van de Poppe highlights the money flow cycle, noting that Bitcoin usually takes the spotlight before halving. In this cycle, the approval of Bitcoin ETFs is expected to generate positive momentum. As money flows through market capitalizations, Ethereum is likely to be the next beneficiary.
Q1 Is Always Great for ETH
Crypto analyst Michale van de Poppe says that in recent weeks, Ethereum has faced negative sentiment, experiencing underperformance compared to Bitcoin. This is considered organic and natural price action, given the prevailing focus on Bitcoin before the ETF approval. Ethereum is anticipated to follow a similar pattern, and this carries various implications and reasons, particularly with the absence of distinct price action at the moment.
Poppe also shares a chart showing that historically, ETH has always outperformed Bitcoin during the first quarter of the year.
Courtesy: Michael van de Poppe
Michael van de Poppe anticipates a Bitcoin price range of $48,000 to $51,000 to be achieved before the awaited ETF approval. His forecast also includes a peak in Bitcoin’s performance in January, prompting a swift movement of funds towards altcoins. According to Poppe, the Bitcoin dominance is likely reaching its pinnacle before the Bitcoin halving. Consequently, he suggests that the first quarter of the year will present favorable returns for investments in the Ethereum (ETH) ecosystem.
The #Bitcoin dominance is likely peaking pre-Bitcoin halving.
That means that Q1 is going to give a great return for investments in the $ETH ecosystem.
I’m positioned and ready. pic.twitter.com/Iqlxkojz4w
— Michaël van de Poppe (@CryptoMichNL) December 22, 2023
