Is Ethereum the Underdog Ready for a Comeback in 2024?
Ethereum’s price has struggled to gather momentum in 2024, leaving investors wondering: Is ETH truly a contrarian bet, or is a breakout on the horizon? Let’s take a deep dive into Ethereum’s current standing and its potential future.
Ethereum: The Contrarian Choice This Year?
Ethereum seems to be playing the role of the underdog as we head into 2025. According to Matt Hougan, Chief Investment Officer at Bitwise Asset Management, Ethereum may currently be undervalued and overlooked.
His analysis stems from Ethereum’s lackluster performance against Bitcoin. On September 16, ETH dropped to its lowest level against BTC in over 42 months—a tough pill to swallow for Ethereum enthusiasts.
Interestingly, while many are skeptical about ETH, Hougan remains optimistic. He believes Ethereum’s challenges aren’t fundamental threats but rather temporary hurdles. In a blog post on September 17, he wrote:
“None of Ethereum’s challenges seem existential, and its opportunities are brimming. I suspect the market may reevaluate Ethereum as we get closer to the November elections and any regulatory clarity that emerges.”
So, while Ethereum’s year-to-date growth isn’t as impressive as competitors like Solana (SOL), which has surged 38%, some investors believe Ethereum might be setting up for a surprise move.
More Downsides for ETH Before a Rebound?
Not everyone is optimistic about ETH’s short-term prospects. Popular crypto trader GGG recently suggested that Ethereum could still experience a further drop before staging a comeback. In a post on X (formerly Twitter), GGG speculated:
“I think we are in a similar spot on $ETH as on the left box. Bear market rally then nuke lower is my guess for now.”
ETH/USDP, 1-week chart. Source: GGG
Even the launch of Ethereum-based exchange-traded funds (ETFs) in July failed to provide a significant boost—ETH is still down nearly 30% since.
However, there’s a silver lining. Crypto analyst Crypto Bullet has pointed out that if ETH continues to dip, it could set up a triple bottom pattern, a historically bullish formation that could trigger a rally before the year ends.
“ETH 2021 vs ETH 2024. Same triple bottom? Looks pretty similar so far.”
Ether triple bottom, 2021 vs 2024 chart. Source: Crypto Bullet
The Key Level to Watch: $2,200
Ethereum’s current price movements are being closely monitored at the $2,200 support level. According to crypto trader Inmortal, ETH is testing a 700-day accumulation range, which serves as a crucial long-term support.
ETH/USDT, 3-day chart. Source: Inmortal
So, what happens if ETH falls below this mark?
According to CoinGlass, a drop below $2,200 could trigger over $1 billion in leveraged short liquidations across various exchanges—a potential scenario that could cause significant volatility.
ETH Exchange Liquidation Map. Source: CoinGlass
Could Bitcoin’s Next Move Lift Ethereum?
Looking ahead, Ethereum’s trajectory may depend heavily on Bitcoin’s price movements. If Bitcoin enters a parabolic bull cycle—as some analysts predict—a surge past $90,000 could fuel bullish sentiment across the broader crypto market, including ETH.
With Bitcoin’s historical Q4 price surges in mind, Ethereum bulls might still have reason to be hopeful. Could Ethereum defy expectations and turn the tables before 2025? Only time will tell, but the signs suggest that ETH might just be gearing up for an unexpected breakout.
📌 This article is for informational purposes only and does not constitute financial advice. All trading decisions should be made based on independent research.
