Ethereum = MySpace of Crypto?I have been watching COINBASE:ETHUSD flirt with 2750 for the better part of May as all crypto has gone "risk on" with Bitcoin's All-Time-High push. This level is the 50% Retracement of the last major high in December 2024 to the low of April 2025. There is also significant Volume Profile Resistance from February matching this price action level. This level is good for a short and can even be managed with tight risk given the clear price structure at this level.
Normally I am a pure technical trader but I have a bearish fundamental bias on Ethereum...
Fundamentals:
Ethereum is dying. I know that may be unpopular to say but it is losing "network effect."
Ethereum used to be the standard for the smart contract use case of cryptocurrency but it is being replaced by competition namely Solana. I ask, "what does Ethereum do that Solana does not do cheaper/faster/better?" Even the President of the United States used Solana to create his scam meme coin. Value judgements aside the use case of smart contracts to create new tokens has proven to be popular and the market has chosen which chain to create them. It was no longer Ethereum.
The best analogy to Ethereum's fall from dominance would be to look back at social media companies like MySpace. At some inflection point for various reasons users choose to leave a platform for another. That is network effect and unfortunately for Ethereum it has already begun to lose it.
