Ethereum (ETH), the leading smart contract platform, has been labeled as “dead” by some due to lackluster price movements, especially in light of the rapid rise of competitors Solana (SOL) and Avalanche (AVAX). However, crypto analyst Metaquant suggests that it’s Ethereum’s turn to rise, citing a similar Layer-1 shift seen in the fourth quarter of 2023 as in 2021.
Metaquant points out that investors are withdrawing their ETH from centralized exchanges and that network activity is gradually increasing. He interprets these signs as the beginning of a shift back to Ethereum, with on-chain data indicating a potential uptrend.
While AVAX and SOL have shown signs of stagnation after their recent surges, Ethereum has maintained a steady, sideways movement without signs of weakness. The analyst predicts that the next bull run will likely focus on Ethereum and its ecosystem.
Ethereum’s network activity, including Layer 2 networks, has been steadily increasing. According to L2beat, the total value locked (TVL) in the Layer 2 ecosystem reached an all-time high of $21 billion on January 4th. This increase in TVL, along with rising daily active wallet addresses, fees on Layer 2 networks, and the market value of stablecoins on Layer 2, indicates a growing ecosystem.
The analyst believes that the rise in ETH’s price has been delayed due to investors’ focus elsewhere, but anticipates that attention will return to Ethereum and Layer 2 once the price starts climbing. On-chain data suggests that a bull run is unlikely without an “ETH season,” implying that such a trend is imminent. Furthermore, analysts expect ETH’s price to reach new highs this year, potentially targeting $10,000, more than double its all-time high from the previous cycle.