Ethereum Is No Longer A 20-100X Coin, But Panic Selling Is A Big Mistake
16 Novembro 2023 - 11:00PM
NEWSBTC
Ryan Sean Adams, a crypto investor and a vocal Ethereum supporter,
notes that some ETH holders are panic selling and diversifying into
layer-1 altcoins like Solana (SOL) or Cardano (ADA), primarily
concerned that the coin may not outperform the market as it did in
the last bull cycle when it soared to around $5,000. Ethereum
Holders Selling For High-Performing Altcoins In an X post on
November 16, Adams said price action, despite these actions, might
rapidly change even if ETH is no longer a 20-100X coin in the eyes
of venture capitalists. The investor compares the current trading
atmosphere to 2020, months before the second most valuable coin
turned higher, surging to record levels. Presently, Ethereum is
trading below the $2,000 round number, pulling back from a recent
higher but remaining within a bullish formation. Still, it appears
the community is dissatisfied with this performance, especially
with competitors, primarily SOL and ADA posting impressive
gains. As of writing on November 16, SOL has not only
reversed losses of November 2022 when FTX filed for bankruptcy in
the United States but has comfortably surged past key resistance
lines, registering new 2023 highs of around $67. To quantify, SOL
is up by over 200%. At the same time, Cardano is firm, adding
roughly 70% from October 2023 lows, looking at price action in the
daily chart. By October, ADA had discouragingly sunk to as low as
$0.25. However, the stellar recovery at the tail end of October
sparked demand for the coin, driving it to present levels. Related
Reading: Howling At The Moon: 23,000% Dogecoin Signal Reawakens
Cardano has been slugging in recent months despite the continuous
ecosystem developments, including the refinement of the network’s
performance during the Basho stage. Several enhancements,
including pipelining, have been introduced to make the network more
scalable and secure. Still, this didn’t reflect in ADA’s price
action until the recent spike in October. ETH Remains A “Fantastic
Asset” For Retail Investors The difference in performance between
Ethereum and competing altcoins, as price action reveals, could be
due to project-related triggers but mainly the difference in market
cap. Ethereum is the second most valuable project, only trailing
Bitcoin, whose market cap is multiples higher than even the second
largest smart contract platform by market cap, BNB Chain.
Related Reading: Bitcoin Open Interest Tops 19-Month High:
Historical Data Shows What To Expect Subsequently, this makes ETH
less volatile, forcing supporters, as Adam notes, to divest into
other more volatile coins. These competing layer-1 altcoins have
registered triple-digit gains in the last month alone. Nonetheless,
even with ETH only adding 30% in the same period, Adams argues that
the coin is a “fantastic asset” from a risk-adjusted basis for the
average retail investor. Feature image from Canva, chart from
TradingView
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