- Arthur Hayes believes Ethereum is undervalued and will outperform solana over the next 18–24 months, citing its strong fundamentals and institutional appeal.
- Despite current bearish signals, technical indicators, rising ETF demand, and recent upgrades suggest ETH could retest $3,000 and potentially exceed its 2024 peak.
Ethereum (ETH) is on the verge of a pivotal shift, according to recent analysis and insights from top crypto figures. Despite bearish on-chain indicators and a stagnant price near $2,400, the outlook for Ethereum is far from bleak. BitMEX co-founder Arthur Hayes is doubling down on ETH, confident it will outperform solana (SOL) in the next 18 to 24 months.
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Hayes Backs Ethereum Over Solana
At Token2049 in Dubai, Hayes argued that Ethereum’s value is vastly underestimated. He acknowledged solana’s explosive rise from $7 to $172 but emphasized Ethereum’s unmatched fundamentals: the largest total value locked (TVL), the most developers, and the highest security among proof-of-stake blockchains.
“Everyone thinks Ethereum does nothing… but it still leads where it matters most,” said Hayes, predicting ETH will shine as the bull run matures.
Signs of a Recovery Beneath the Surface
Technically, Ethereum faces strong resistance at $2,746, with support at $2,226. While daily charts show mixed signals—like a bearish RSI reading of 65—weekly charts offer hope. Indicators like MACD and RSI suggest bullish momentum is building, potentially setting the stage for a breakout.
Adding to this optimism, analysts at CryptoQuant noted ETH has entered an “undervaluation zone.” The ETH/BTC ratio—often a marker for altcoin season—recently hit its lowest level since 2020 before bouncing back 38% in early May. This could signal a shift in favor of Ethereum and other altcoins.
Institutional Interest and Upgrades Bolster ETH’s Case
Ethereum core developer Preston Van Loon believes ETH is becoming the go-to platform for institutions. He emphasized the significance of the recent Pectra upgrade, which improved scalability, rollup support, and validator performance.
Looking ahead, Ethereum plans to release two smaller, faster upgrades annually—improving developer coordination and reducing complexity. Van Loon also highlighted Ethereum’s role in real-world asset tokenization, suggesting this will only grow with improved layer-2 interoperability.
ETF Demand and Low Selling Pressure Add Fuel
Supporting the bullish narrative is the rising ETF investment in Ethereum, indicating growing institutional confidence. Additionally, exchange inflow data shows lower selling pressure compared to bitcoin, suggesting a relatively stable environment for price growth.
As Ethereum hovers near a critical support level, a confluence of technical signals, macro trends, and institutional interest could push ETH to retest $3,000—and potentially revisit its 2024 peak above $4,100.
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