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In an interesting piece of data shared by a popular analyst, Stockmoney Lizards has shared his bold opinion on Ethereum’s future, claiming that the once-dominant smart contract platform might be losing its relevance. According to the analyst, Ethereum’s core use case—smart contracts—is rapidly diminishing, and its much-anticipated “Merge” event has had little impact on the token’s price, even though ETH has become deflationary.
Unpopular opinion: #Ethereum is dead.
— Stockmoney Lizards (@StockmoneyL) September 20, 2024
Smart contracts, Ethereum's core use case, are rapidly diminishing. The Merge had little to no effect on the price, even though $ETH has become deflationary. Additionally, staking with higher returns is available on other networks, leaving… pic.twitter.com/2tIHMI3igo
Is Ethereum Dead? Analyst Weighs In
One key issue highlighted is the rise of competing networks offering higher staking returns, reducing Ethereum’s appeal to investors. This, combined with a lack of new unique selling points, raises concerns about its future positioning in the crypto space.
The analyst also shared a chart analyzing the ETH/BTC pair, illustrating how Ethereum’s performance compares to Bitcoin over time. Historically, a long-term trendline has shown support for Ethereum against Bitcoin since 2016, but the analyst warned that support levels tend to weaken after multiple tests. If Ethereum fails to hold this critical level, it could signal a downturn, with Bitcoin outperforming ETH.
ETH Price : Current Market Scenario
Despite the negativity, Ethereum’s price is approaching a key resistance level of $2,530. A bullish breakout could push ETH toward testing its upper target of $2.8K in the next month. However, if the bulls face resistance and fail to break out of the current descending channel pattern, ETH could fall to $2.1K in the coming weeks. The next move depends on whether bullish momentum can hold or if rejection leads to a pullback.
Having said the analysts are also bearish due to the sudden large transfer of 150,000 Ethereum to exchanges raises concerns, as it could signal potential selling pressure. This move might negatively impact market sentiment and create liquidity issues, urging traders to stay cautious and keep a close watch on the situation.