The Ethereum (ETH) price fell 3.3% on Thursday to around $2,930, with high daily trading volumes of $13.5 billion. Ether has erased Wednesday’s gains following US CPI data, with bearish sentiments returning to the market. The ETH/BTC pair saw a recent death cross with Ether hitting new three-year lows. Coinbase research analyst David Han mentioned that the approval of Bitcoin ETFs in the US reinforces Bitcoin’s narrative as a store of value, while Ethereum’s positioning within the crypto sector remains in question. The SEC is expected to reject applications for multiple spot Ethereum ETFs later this month, as Ethereum’s status as a potential security is still being considered.
Competing layer-1 networks like Solana could detract from Ethereum’s position as the leading network for dApp deployment. Ethereum’s EIP-1559 upgrade earlier in the year has reduced the crypto’s burn rate, which could be seen as a long-term positive for adoption. However, some have interpreted the lower burn rate as bearish for ETH. Citron Research founder Andrew Left stated that he shorted Ether, suggesting that it could be labeled as a security and may not receive the same approval as Bitcoin. The ETH/BTC pair is currently in a multi-year downtrend, with whales potentially hesitating to accumulate Ether while Bitcoin remains strong.
The Ethereum price prediction indicates that bears are in control in the short term, with strong resistance at major short-term moving averages. ETH is in a medium-term downward trend channel from earlier yearly highs and forming a descending triangle structure. Traders should monitor an uptrend since October and a potential drop below recent lows towards the early 2024 highs near $2,700. If Ether retests the $2,150 zone, whales may accumulate, as it would offer a significant discount from its earlier yearly high. Amid the crypto bull market, investors may look to meme coin season for higher upside prospects than ETH.
With meme stock season returning, investors might consider meme coins like Dogecoin and Shiba Inu for potential returns. For those seeking even higher gains, newer meme coins like Wiener AI (WAI) could be promising. Wiener AI, a sausage dog-themed coin, offers AI-powered trading tools and has attracted nearly $2 million in presale investments. Investors interested in WAI should act quickly, as the price is expected to rise once the presale hits $2.15 million. Presale investors are currently earning large staking yields of 499%, which may decrease as the presale progresses. Consideration of alternative investments like meme coins could provide opportunities for significant returns compared to Ethereum.
