Analyst Warns: ‘Ethereum is Dying’ And Here’s Why

Among the top largest cryptocurrencies, Ethereum (ETH) was the worst performer on this stage, with the asset losing around 24% of its value over the past week compared to its peers. 

This downward trend also extends to Ethereum’s daily performance, with a 3.9% drop. 

Duo Nine, a prominent cryptocurrency analyst, has expressed serious concerns about Ethereum’s current path, suggesting that the platform may be “slowly dying.” According to Duo Nine, Ethereum’s poor performance, particularly when compared to Bitcoin and Solana, raises significant doubts about its future sustainability. 

“When both Bitcoin and Solana outperform Ethereum, you have to start asking some tough questions,” Duo Nine remarked, highlighting a troubling trend among Ethereum enthusiasts and developers who seem to be losing confidence in the asset’s potential.

The analyst partly attributes Ethereum’s struggles to the “XLM curse” —a phenomenon where a network’s efficiency and cost-effectiveness fail to translate into increased token value.

He elaborated, “If your network is fast and inexpensive, there’s no reason for your token to surge in value.” 

The arrival of Layer 2 solutions like Arbitrum has significantly lowered transaction costs. While technically advantageous, it may negatively impact ETH’s market price. The reduced demand for ETH as a gas token could lessen its significance and value. 

Additionally, Duo Nine critiques Ethereum’s economic model, pointing out that it now faces an inflationary token supply, allegedly to cover operational costs that transaction fees alone no longer meet. 

Despite this, Ethereum’s price is still poised to retest the $2,600 resistance level after briefly pulling back to gather liquidity at the $2,330 support. Multiple indicators, including the Moving Average Convergence Divergence (MACD), suggest a bullish outlook.

According to this Ethereum price prediction, surpassing the $2,600 resistance would significantly boost the likelihood of Ether advancing toward the $3,000 mark. Along with support at $2,330, the 20-day Exponential Moving Average (EMA) offers additional short-term reinforcement at $2,505.