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Ethereum Price Soars 9% as Crypto Market Rebounds: What’s Next?
The crypto market has made a significant turnaround in the past day, with Ethereum price surging 9% to surpass $1,500. This sudden increase is attributed to a positive inflation report and the U.S. decision to pause tariffs. The shift in sentiment has shifted the Crypto Fear & Greed Index from “Extreme Fear” to “Fear.”
Despite this rebound, institutional confidence remains shaky, with investors continuing to withdraw from crypto ETFs. In fact, Ethereum funds experienced $11.2 million in outflows, despite the asset’s impressive 8.1% gain against Bitcoin.
Market sentiment has taken a bearish turn, with the sentiment around Ethereum turning increasingly negative. Since December 2021, the value of ETH has dropped by approximately 77% when compared to Bitcoin and remains significantly below its all-time high in dollar terms. This underperformance has led many smaller altcoins to surpass it, leading to frequent comparisons with low-value “shitcoins.”
The market’s frustration with Ethereum stems from a few key issues. The move to faster Layer-2 networks resulted in splitting user activity, while upgrades have been slow and complicated, making it challenging for regular investors to keep up with the rapidly changing crypto landscape.
In contrast, Bitcoin’s simplicity and Solana’s speed have made them more attractive options. Furthermore, Ethereum’s unclear regulations and lack of a strong narrative have contributed to its current state.
However, behind the scenes, Ethereum continues to advance. The network transitioned to Proof-of-Stake in 2022, reducing energy consumption and decreasing the new ETH supply. In addition, it enabled users to withdraw staked ETH in 2023 and is planning further upgrades to make transactions on Layer-2 cheaper.
Ethereum remains the second-largest crypto asset by market capitalization and has maintained its position ahead of Tether. Although some are feeling extremely bearish about Ethereum’s prospects, such a strong sentiment can often indicate that a trend reversal may be near.
Source: https://coinpedia.org/news/ethereum-price-soars-9-as-crypto-market-rebounds-whats-next/
