Ethereum struggles as BTC, SOL lead in money flow: Can ETH turn around?

• Ethereum faces low crypto money flow.
• Buterin’s influence set spur ETH back to dominance.

The latest analyses have revealed a shift in the market, with Solana overtaking Ethereum [ETH] in terms of crypto money flow.

The global liquidity surged as Bitcoin [BTC] and Solana led the cryptocurrency space, occupying the top two positions, followed by Binance Coin in third, and Ethereum trailing in fourth.

This development raises the question of whether Ethereum can regain its usual second place and turn its fortunes around.

Source: TradingView

Technical analysis of ETH/USDT

Currently, Ethereum’s price action shows a downward trend on the hourly timeframe. ETH, like many other cryptocurrencies, experienced a decline on 28th August.

Despite this, Coinbase buyers have been aggressively purchasing at lower levels, placing ETH/USDT in an ideal reversal zone. The question now is whether Ethereum can rally and push its price higher.

Source: TradingView

Buterin’s influence on ETH

Vitalik Buterin continued to actively promote Ethereum amid its recent struggles. Buterin on X affirmed that Ethereum remains a powerful force in the cryptocurrency industry stating:

“I’ve talked to a bunch of L2s and there is a lot of will to work together to improve on Ethereum ecosystem-wide interoperability. One thing I would add, is that Ethereum L1 is gaining in robustness. Over the last year we’ve seen censorship and centralization scares not pan out – in fact, quite the opposite.”

Buterin also addressed the misconception that proof-of-work (PoW) is the gold standard for digital assets, arguing that this narrative is losing traction.

He highlighted the ongoing development of Ethereum’s roadmap, specifically focusing on the block construction part, which influences ETH staking.

Source: Dune

The progress in this area, particularly with the FOCIL and BRAID solutions, is promising for Ethereum’s future.

Additionally, Buterin noted that the growing success of smart contract wallets and the L1’s robustness are very bullish signs for Ethereum’s long-term prospects.

ETH mobile operating system

In a further show of support for Ethereum’s growth, Buterin recently transferred 200 ETH, worth about $517,000, to a multi-signature contract believed to be a donation to the ethOS (Ethereum Phone) project.

This project aims to develop the world’s first Ethereum mobile operating system, showcasing the ongoing innovation within the Ethereum ecosystem.

Source: Arkham

While much of the recent development has focused on Layer 2 (L2) solutions, this progress is still a win-win for Ethereum and its L2s.

Read Ethereum (ETH) Price Prediction 2024-25

Speculation index says…

Finally, the speculation index, which measures the percentage of altcoins with 90-day returns greater than Bitcoin, is at its lowest level since August 2023.

Historically, low readings on this index have preceded significant investment opportunities in altcoins. This suggests that ETH could be poised for a turnaround, potentially driving its price higher in the coming months.

Source: Capriole Investments