Is Ethereum Dead? – 5 Top Reasons Why ETH Will Bounce Back

November has been a whirlwind month for crypto enthusiasts.

Ethereum (ETH), once the undisputed king of decentralized finance (DeFi), faces fierce competition as rival blockchains gain momentum.

With Bitcoin’s resurgence and political tailwinds from Donald Trump’s campaign energizing markets, Ethereum’s position is being tested.

This prompts the questions from ETH maximalists: Is ETH dead? Will it bounce back?

I will discuss why ETH is plummeting and what hopes there are for ETH.

Let’s dive in.

What’s Holding ETH Back?

Ethereum was created to be more flexible than Bitcoin and has maintained its #2 position just below the cryptocurrency king.

It started with the whole change of switching from POW to POS consensus mechanism.

This was in a bid to make Ethereum blockchain scalable and the later upgrades were meant to work on reducing the fees.

But the team been unable to achieve its intent.

The price of ETH climbed 25% over the past month, reaching $3,450 on November 22 2024.

While this marks steady growth, its performance lagged behind that of its major contenders in the smart contract and DeFi ecosystems.

This disparity has raised concerns about Ethereum’s inability to hit $4,000 in this market cycle.

Aside the aforementioned reason, skeptics point to challenges such as its complex architecture and slowing deflationary trends.

Ethereum’s transition to deflationary economics hasn’t been as impactful as hoped.

ETH officially became deflationary in September 2022, but the expansion of Layer-2 networks in 2024 has slowed this trend.

Not to mention the wrong timing of the spot ETH ETFs.

Yes, there was a little activity in the past days but the spark has dimmed again.

Other pointers are people saying that ETH is a hard sell. By this, they mean that Ethereum has no clear proposition.

Let me explain: ETH lacks a clear identity of what it is known for.

BTC owns the store of value narrative, SOL is know for its crazy scalability, DOT champions interoperability, etc.

It becomes somehow hard to sell ETH value to investors.

But, even with these challenges, there are still bullish signs for Ethereum.

I will talk about that below.

5 Reasons Why Ethereum Will Bounce Back

1. Cyclical Bottom in ETH/BTC Ratio

Renowned trader, Peter Brandt, identified a cyclical bottom in the ETH/BTC price ratio.

Historically, this has been known as a precursor to ETH outperforming BTC.

A cyclical bottom is a chart pattern that…