Ethereum underperforms Bitcoin, Solana and traditional stocks, experts weigh in on potential reasons

Ethereum’s underperformance compared to assets within and outside the crypto market has garnered attention from experts. F2pool co-founder highlighted that while Ethereum is a groundbreaking innovation for human civilization, it is currently undervalued due to the lack of killer applications. The analysis by Ecoinometrics revealed that Ethereum has been the worst-performing asset among large capitalization assets this year. CryptoQuant analysts noted that Ethereum’s struggles intensified after the anticipated transition to a proof-of-stake consensus mechanism known as The Merge. They attributed the underperformance to lower transaction counts, rising supply, and weak network activity. Despite the FUD surrounding Ethereum’s performance, F2pool’s co-founder emphasized the need to tolerate mispricing and volatility to achieve real returns. Furthermore, Ethereum ETFs experienced a second consecutive day of negative flows, contributing to the downward pressure. In terms of technical analysis, if Ethereum fails to reclaim the $2,400 support level, it could decline towards the $2,111 support level before potentially rallying. The Relative Strength Index (RSI) currently indicates a potential brief rise if it moves above its moving average. Short-term price targets for Ethereum include $2,425 to liquidate positions worth over $45 million.