Ethereum (ETH) recorded a 9% increase earlier in the week but failed to surpass the $2,600 level. Despite bullish technical signals, traders remain cautious.
Technical Analysis and ETH Growth
According to trader MerlijnTrader, the formation of a "golden cross" on Wednesday may indicate the onset of a bull market for ETH. "This is a signal that the next bull run could be approaching," the trader noted.
Low Confidence in ETH Among Traders
Despite the jump to $2,600, demand for leveraged long positions remained low. The current premium on ETH futures is below 5%, indicating uncertainty among traders.
Competition from Solana and Its Impact on ETH
The launch of the first Solana ETF in the US undermined ETH's leadership among altcoins and raised expectations. For Ethereum to see sustained growth, it needs to provide additional benefits to ETH holders.
The analysis of the current situation with Ethereum highlights risks and a lack of confidence among traders in the near term. Specifically, competition from Solana and insufficient attractiveness of ETH may hinder its resurgence.
