Here’s What’s Keeping Ethereum From Taking Bitcoin’s Shine, ETH Claims $1,500

Reynaldo Marquez

2 years ago

2 mins read

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Ethereum is finally coming back to life after a long period of consolidation and leading the current bullish momentum in the crypto top 10 by market cap. The slow price action might be boring for most market participants, but an expert believes ETH underwent a critical stage to create a lasting bottom.

At the time of writing, Ethereum (ETH) trades at $1,550 with sideways movement over today’s trading session and a 20% profit in the last seven days. The meme coin records a 30% profit over the same period. In the crypto top 10, ETH’s price performance is only surpassed by Dogecoin (DOGE).

Ethereum ETH ETHUSDT CHART 1 — ETH’s price with bullish momentum on the daily chart. Source: **ETHUSDT Tradingview**

Ethereum Close To Another Multi-Year Bottom?

Senior Commodity Strategist for Bloomberg Intelligence Mike McGlone believes Ethereum’s migration to a Proof-of-Stake (PoS) consensus will be crucial in its long-term appreciation. In the current macroeconomic landscape, high energy prices and high inflation have taken a toll on global markets.

The U.S. Federal Reserve (Fed) has tightened its monetary policy in response to this situation. As a result, Ethereum and other risk assets returned to their pre-pandemic levels.

Still, the second crypto by market cap has been unable to hold the line close to its 2017 all-time high at around $1,400 to $1,500. As McGlone emphasized, ETH’s price has prevented further downside at these levels despite the Fed implementing its most aggressive strategy in forty years.

In that sense, the expert believes Ethereum is cementing its position “at the epicenter of the digitalization of finance.” McGlone wrote:

(…) the No. 2 crypto may be forming a foundation around $1,000 (…). Our graphic shows the No.2 crypto potentially building a base around the 2018 peak, when global liquidity topped out around plus 14%. Ethereum appears at a discount within an enduring bull market (…).

Ethereum ETH ETHUSDT Chart 2 — Source: Mike McGlone via Twitter

The Ultimate Deflationary Asset

If macroeconomic conditions improve and the Fed pivots its monetary approach, Ethereum might finally reclaim previously lost territory and steal Bitcoin’s thunder. The expert hints at a faster decline in the supply of ETH versus BTC.

Rising demand for digital assets and a decline in supply will prove positive for the second crypto by market cap. McGlone wrote:

(…) new Ethereum supply shrinking more quickly after a protocol change that began moving coins from circulation in August 2021 and this year’s merge. The 52-week rate-of-change in the number of new Ethereum coins from Conmetrics vs. the total outstanding has fallen under 2% and is on path to drop below that of Bitcoin.

Ethereum ETH ETHUSDT Chart 3 — Source: Mike McGlone via Twitter

Ethereum Close To Another Multi-Year Bottom?

The U.S. Federal Reserve (Fed) has tightened its monetary policy in response to this situation. As a result, Ethereum and other risk assets returned to their pre-pandemic levels.

In that sense, the expert believes Ethereum is cementing its position “at the epicenter of the digitalization of finance.” McGlone wrote:

(…) the No. 2 crypto may be forming a foundation around $1,000 (…). Our graphic shows the No.2 crypto potentially building a base around the 2018 peak, when global liquidity topped out around plus 14%. Ethereum appears at a discount within an enduring bull market (…).

The Ultimate Deflationary Asset

Rising demand for digital assets and a decline in supply will prove positive for the second crypto by market cap. McGlone wrote:

(…) new Ethereum supply shrinking more quickly after a protocol change that began moving coins from circulation in August 2021 and this year’s merge. The 52-week rate-of-change in the number of new Ethereum coins from Conmetrics vs. the total outstanding has fallen under 2% and is on path to drop below that of Bitcoin.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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