Ethereum (ETH) continues to hover near a critical support level of $2,400, with on-chain metrics reflecting mixed sentiment. Despite short-term bearish signals, prominent voices in the crypto space — including BitMEX co-founder Arthur Hayes and core Ethereum developers — are turning increasingly optimistic. They believe ETH is poised for a major comeback, potentially outperforming high-flying competitors like Solana (SOL) in the next 18 to 24 months.
This growing confidence stems from Ethereum’s unmatched fundamentals, upcoming upgrades, and shifting market dynamics. With institutional interest rising and key technical indicators flashing recovery signs, many analysts now see ETH entering a deeply undervalued phase — a potential turning point ahead of the next bull cycle.
Ethereum Price Analysis: Mixed Signals with Long-Term Upside
On the daily chart, Ethereum’s technical indicators present a mixed picture. The Relative Strength Index (RSI) stands at 65, just below the 70 "overbought" threshold, suggesting momentum is building but not yet excessive. Meanwhile, the Moving Average Convergence Divergence (MACD) shows green histogram bars above the neutral line, indicating underlying bullish momentum.
👉 Discover how market momentum could accelerate Ethereum's next move.
ETH is currently approaching a key resistance level at $2,476 — the 50% Fibonacci retracement of its drop from the December 2024 high of $4,107 to the April 10 low of $1,385. Should price action weaken, support may emerge at $2,226, corresponding to the upper boundary of a Fair Value Gap (FVG) on the daily chart.
Looking at the weekly timeframe, however, the outlook becomes more constructive. The RSI remains above 50, and MACD continues to show positive momentum, reinforcing a longer-term bullish bias. Two major resistance levels to watch are $2,605 and $2,921 — both tied to FVG boundaries on the weekly chart and nearing the psychologically significant $3,000 mark.
In the event of a deeper pullback, Ethereum could find support at $2,323 or $1,873. However, with growing institutional demand and network improvements underway, many analysts believe a retest of the $3,000 resistance — and even the 2024 high above $4,100 — is increasingly likely.
Arthur Hayes: Why Ethereum Could Outperform Solana
Arthur Hayes, former CEO and co-founder of BitMEX, has made headlines with his renewed bullish stance on Ethereum. In a recent interview with Fortune Crypto, Hayes argued that Ethereum is “hated” but fundamentally strong — a classic setup for a major price rebound.
“...mainly because it's very disliked. Everyone thinks Ethereum isn’t doing anything right, that they’ve failed on every front. But it still has the highest total value locked (TVL), the most developers, and remains the most secure proof-of-stake blockchain. Yes, price performance from 2020 to now hasn’t been great.”
Hayes acknowledged that Solana has outperformed Ethereum in recent years — with SOL surging from around $7 to over $170 — driven by faster transactions and lower fees. However, he believes Ethereum’s resilience and ecosystem depth position it for stronger long-term gains.
He forecasts that during the next 18- to 24-month bull market cycle, Ethereum could not only recover lost ground but surpass Solana in both price performance and market relevance.
This optimism is rooted in Ethereum’s ability to evolve through coordinated upgrades, maintain security at scale, and attract institutional capital — areas where newer blockchains still face challenges.
👉 Explore how investor sentiment shifts could redefine Ethereum's trajectory.
Core Developers: Stability and Institutional Adoption Are Key
Preston Van Loon, co-founder of Prysmatic Labs and a core Ethereum protocol developer, emphasized in an exclusive conversation that Ethereum’s future lies in consistent, reliable upgrades.
“Ideally, we’re moving toward two smaller forks per year. Pectra included a range of protocol changes — from validator improvements to account abstraction and rollup scalability. Going forward, we may narrow the scope of upgrades to enable faster delivery and easier testing.”
Van Loon highlighted Ethereum’s remarkable track record: zero network downtime since mainnet launch. Maintaining this stability remains a top priority as the network evolves.
He also addressed Ethereum’s growing role in institutional adoption:
“Ethereum’s role in real-world asset tokenization is expanding, but challenges remain. As institutional usage grows, Layer 2 scalability and user experience will become even more critical. While Pectra’s blob capacity expansion boosts throughput, fragmentation across rollups and ecosystem complexity could slow mainstream adoption. Improving interoperability between L2s and enhancing developer tools are essential to keeping Ethereum as the preferred platform for institutional use cases.”
These strategic upgrades aim to make Ethereum not just faster and cheaper, but more cohesive and enterprise-ready — a crucial step toward broader financial integration.
Is Ethereum at a Turning Point?
CryptoQuant analysts suggest Ethereum may have already bottomed out. The ETH/BTC price ratio recently hit its lowest level since January 2020 — a historical signal that often precedes a “altcoin season.”
Since that low, the ratio has rebounded by 38% in mid-May alone, reigniting speculation that altcoins are preparing for an extended rally phase.
An “altcoin season” typically occurs when at least 75% of the top 50 cryptocurrencies (by market cap) outperform Bitcoin over a 90-day period. Past ETH/BTC lows in 2017, 2018, and 2019 were followed by exactly such cycles.
Several catalysts are now aligning:
- ETF inflows: Demand for spot Ethereum ETFs has grown since April, increasing institutional holdings.
- Successful upgrades: The Pectra upgrade improved scalability and set the stage for future innovations.
- Reduced exchange supply: Lower sell pressure compared to Bitcoin suggests strong holder conviction.
- Macroeconomic tailwinds: Easing monetary policies and improving risk appetite support risk-on assets like ETH.
Together, these factors suggest Ethereum is no longer lagging — it may be laying the foundation for a powerful resurgence.
Frequently Asked Questions (FAQ)
Q: Why is Arthur Hayes bullish on Ethereum despite its weak price performance?
A: Hayes believes Ethereum is undervalued due to widespread negativity. Despite criticism, it leads in TVL, developer activity, and security — fundamentals that often precede price recovery.
Q: Can Ethereum really outperform Solana?
A: While Solana has delivered strong short-term returns, Ethereum’s robust ecosystem, institutional backing, and upgrade roadmap give it stronger long-term potential for sustainable outperformance.
Q: What is the significance of the ETH/BTC ratio dropping to multi-year lows?
A: Historically, extreme lows in the ETH/BTC ratio have marked turning points before major altcoin rallies. A rebound suggests growing confidence in Ethereum relative to Bitcoin.
Q: How do upcoming Ethereum upgrades support price growth?
A: Upgrades like Pectra improve scalability and developer experience. Faster, more predictable releases increase network reliability — key for attracting institutional users.
Q: What resistance levels should ETH watchers monitor?
A: Key levels include $2,476 (Fibonacci midpoint), $2,605, and $2,921. A breakout above $3,000 could signal a retest of 2024 highs near $4,100.
Q: Is now a good time to invest in Ethereum?
A: With ETH trading near multi-year relative lows against BTC, strong fundamentals, and positive macro trends, many analysts view this as a strategic accumulation window.
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