- Ethereum’s dominance is being challenged by competitors like Solana, which offer faster and cheaper transactions, leading analysts to draw comparisons to Nokia’s decline.
- Technically, Ethereum’s price indicators suggest bearish momentum, with a crucial support level around $1,500-$1,600.
Ethereum’s dominance as the once undisputed king of altcoins is threatened by fast-rising rivals, especially Solana and XRP. According to a top market analsyst CryptoCurb, According to top market analyst CryptoCurb, Ethereum’s recent price performance is eerily reminiscent of Nokia’s historic decline in the mobile industry. And just like Nokia was eventually outpaced by Apple, Ethereum may be on the same trajectory.
The analysis revealed some interesting stats. According to CryptoCurb, the altcoin has only experienced two major major peaks in a span of four years. Despite being a god in the smart contract and dApp field, Ethereum is facing a hard time to maintain demand. Its high gas fees, sluggish transaction speeds, and increased reliance on its layer 2 networks is not doing Ethereum any better.
The growing sentiment is that Ethereum has failed to evolve quickly enough to meet the rapidly changing needs of the Web3 space.
On the other side, Solana is flourishing with success as it gains momentum. Widely known for its lightning-fast speeds and minimal transaction costs, Solana has increasingly become the go-to platform for developers and users alike. CryptoCurb noted that SOL currently sits at one-third of Ethereum’s $186 billion market cap, but aims to hit the halfway mark, a move that could set the stage for Solana to eventually overtake Ethereum in market cap and significance.
The fundamentals matter more than technicals at this point, ETH remains overpriced at 3x the market cap of Solana, despite weaker fundamentals.
said CryptoCurb.
While others agree with CryptoCurb’s sentiment of likening Ethereum to Nokia, Analyst Cryptobetzzz jumped to Ethereum’s defense. The analyst cautioned that comparing Ethereum to Nokia may be overstated. While the challenges are real, Ethereum still maintains a robust developer community, deep liquidity, and institutional interest that may give it the tools to stage a comeback.
CEO of Into The Cryptoverse, went further, suggesting that Solana may eventually face a similar downturn, pointing out that SOL/BTC is mirroring ETH/BTC’s long-term decline.
Jumpign into a technical point of view, Ethereum’s price outlook remains bleak. The Relative Strength Index (RSI) on the weekly chart continues to make lower lows, and the Awesome Oscillator (AO) signals building bearish momentum. Unless ETH finds strong support in the $1,500–$1,600 demand zone, hopes of a near-term recovery remain slim.
A rebound from this level could, however, trigger a rally toward the $2,000 mark, but it would need renewed investor interest and bullish catalysts to sustain any gains.
Meanwhile, at the time of writing, ETH is swapping hands with $1,556.69 marking a 2.37% decline in the past 24 hours. Notably, ETH’s marke price has also recorded a 2.27% decline $188.17B.