Ethereum (ETH) prices have experienced significant downward pressure, now trading around 56% lower than the peak recorded in November. As a result, Ethereum’s recent performance has notably lagged behind peers like Bitcoin (BTC) and Solana (SOL). The cryptocurrency is currently trading at its lowest ever level relative to Solana and near its 2020 lows when compared to Bitcoin, prompting some investors and industry analysts to question its future viability.
In a recent commentary, Charles Hoskinson, the founder of Cardano (ADA), voiced skepticism about Ethereum’s long-term survival, stating that he does not expect Ethereum to remain relevant in the next 15 years. Hoskinson’s forecast echoes broader market concerns, based primarily on the significant growth and adoption of Ethereum alternatives—particularly layer-2 solutions like Base, Optimism, Arbitrum, and Polygon—which are gaining traction by addressing Ethereum’s drawbacks, namely slow transaction speeds and high gas fees.
Despite this critical outlook, several fundamental metrics suggest that Ethereum’s prominence remains substantial. Over the last month alone, Ethereum-based decentralized exchanges (DEXs) processed transaction volumes exceeding $57 billion, second only to Solana, whose DEX volumes reached approximately $61.3 billion in the same period.
Moreover, Ethereum maintains its leadership in total value locked (TVL), holding roughly $107 billion, translating to about 57% of the market share. In the stablecoin sector, Ethereum is also dominant, with a combined stablecoin market capitalization of $124 billion—equating to roughly half the overall market share. Additionally, within the non-fungible token (NFT) landscape, Ethereum continues to hold the number-one position.
Further reinforcing this resilience, on-chain data from analytics firm Santiment reveals continued growth in Ethereum’s holder base. Ethereum addresses now exceed 144.8 million, up significantly from around 130 million addresses less than one year ago. The Mean Dollar Invested Age (MDIA)—a metric indicating how long investors have held on without selling—has reached notably high levels (658 days), strongly implying sustained investor confidence and a low willingness from long-term holders to sell their positions.
From a technical perspective, Ethereum has rebounded noticeably after recently reaching lows around $1,383 at the beginning of April. Presently hovering around $1,787—and having broken out of a falling channel that has constrained price movements since last November—Ethereum has moved above its 25-day moving average and is forming a bullish flag pattern. Technical indicators such as the Awesome Oscillator are converging towards a bullish crossover, historically associated with considerable upward momentum.
The critical price threshold to monitor closely is approximately $2,150—a level that previously acted as key support last August and September. An upward move past this level could potentially drive Ethereum towards the psychologically significant $3,000 mark. Conversely, failure to surpass this price point might signal a bearish break-and-retest scenario, which could presage further declines.
