As Ethereum hangs on $2.1K, experts are fearful that more downside may be on the horizon.

Is now a good time to buy ETH on the dip, or do other altcoins present better opportunities?

Ethereum’s Long-Term Downtrend and Rising Competition 

From a fundamental standpoint, Ethereum is in a tough spot right now. Notably, the project has lost all wind from under its sails due to a downtrend that started one year today.

On 10 March 2024, Ethereum reached a peak price of $3,915. Optimism was high, and investors were eyeing a break above $5,000. However, after consolidating between $3K and $4K for a month, $ETH lost the support level and retracted to $2,400.

It has been unable to reclaim the March 2024 high since, and its only attempt in December 2024 was met with devastating selling pressure.

Now, $ETH trades at $2,100, and 48% of buyers are losing money, per Into The Block data. 

Indeed, this is not good for Ethereum’s market sentiment, especially when some competitors remain at significant premiums compared to their prices one year ago. For instance, XRP is up 215% this year.

To make matters worse, other altcoins such as XRP, Solana, Litecoin, and Dogecoin have pending ETF approvals, while the Ethereum spot ETFs are already live.

This could further divert attention away from Ethereum in the coming months, adding to its bearish fundamental outlook. 

Double Top Chart Pattern Could Create 40% $ETH Selloff

As mentioned, Ethereum abruptly rejected the March 2024 resistance level after retesting it in December. This created a “double top” chart pattern, which is a well-known indicator of a price reversal to the downside.

According to prominent analyst Nebraskangooner, $ETH is now veering toward the $1,200 level. This will mark more than a 40% retracement from its current price.

The most bearish factor in Ethereum’s recent price action was a close below the $2,400 level on the monthly time frame. This marked a break in structure and confirmed Ethereum is no longer in an uptrend.

With both challenging fundamentals and now a confirmed bearish reversal, the upcoming months could present even more downside for Ethereum.

However, as mentioned, not all cryptocurrencies have a bearish outlook right now. Ethereum is losing ground to competition, which could continue in the coming months.

The latest Ethereum competitor to emerge is Solaxy, the world’s first Solana layer 2 blockchain.

Analyst Says Solaxy Could 10X as Presale Raises $25M

Solana is the leading smart contract blockchain by users and trading volume, but Solaxy aims to take it to new heights with increased transactional capabilities.

While Solana is highly scalable, it continues to suffer congestion issues in periods of high network activity. This leads to longer wait times and failed transactions, but congestion will no longer be an issue once Solaxy launches.

Through the Solaxy layer 2 blockchain, Solana will become cheaper, faster, and more reliable.

Soon, Etheruem’s most formidable competitor will have a new transactional layer that creates an even bigger advantage.

Right now, Solaxy is available to buy in a public presale. The presale has raised $25.6 million so far and is currently priced at $0.001658. 

Presale participants can also stake their tokens and currently earn a 159% APY. Over 7 billion tokens have already been staked, showing strong support among investors.

While Ethereum is forecasted to lose more value in the coming weeks, industry experts tip Solaxy to explode. For instance, Jacob Bury recently appeared on the 99Bitcoins YouTube channel and speculated that $SOLX could see 10x gains.

By improving the user experience on Solana, Solaxy could prove the most lucrative Ethereum competitor this year. However, the presale price will rise throughout the campaign, so potential investors should act fast to secure the most value for money.

Visit Solaxy Presale

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