GM Explorer,

Ethereum (ETH) seems to be playing catch-up this cycle, but could its time to shine be just around the corner? Let’s take a closer look!

Here’s what we got for you today:

• 🎙️ Can ETH reach $4,000? What analysts have to say!

• 🔎 Market Insight

• 🧱 Around the Block: XRP and DOGE lead crypto losses as a weekend pullback in Bitcoin causes $500M liquidations.

🎙️ Can ETH Reach $4,000?
What Analysts Have to Say!

In the last 30 days:

• Bitcoin's price surged by an impressive 47%.

• Sui experienced a remarkable increase of 74%,

• Solana soared by 56%,

• and Polkadot (DOT) climbed by 44%.

However, Ethereum only saw a 25% increase during this period, which left it lagging behind its DeFi competitors.

This underperformance has raised concerns among some investors regarding its ability to reach $4,000 by the peak of this cycle.

Additionally, analysts have voiced bearish concerns about the fundamentals of Ether's economy.

Greg Magadini, Amberdata’s Director of Derivatives, shared his thoughts with clients, stating:

“ETH faces serious headwinds as the value proposition of ‘sound money’ … has flipped to inflation supply as nearly all DeFi transactions are being executed on L2s … I believe that’s drastically dragging prices down.”

Yet, there are those who believe that Ethereum is poised to outperform Bitcoin!

Legendary trader Peter Brandt also noted that the price ratio between BTC and ETH is hitting a cyclical inflection point, echoing a bottom in past cycles.

This indicates that Ether's price could be on the cusp of a significant rise—even against BTC.

Crypto analyst Ali Martinez is also optimistic, forecasting that Ethereum will surge past Bitcoin by the end of this macro market cycle.

He suggests that in his most bullish scenario, Ether could peak at an impressive $6,000 while at least hitting $4,000 in this cycle.

Institutional interest in Ethereum is on the rise, reflecting its growing potential.

More investors are not only holding Ether but are also locking it into staking contracts to help secure the platform’s economy while earning yield.

In fact, the number of Ethereum stakers increased by over 30% in the past year, reaching the milestone of one million stakers for the first time in June.

Additionally, the volume of decentralized applications (DApps) surged by 38% in November, highlighting Ethereum's dominance in the Web3 landscape.

If you're interested in a deeper analysis of Ethereum, here's a great article to read.

🔎 Market Insight

This is the USDT dominance chart. (USDT.D)

For those unfamiliar, USDT is a stablecoin pegged to the US dollar. USDT dominance, on the other hand, measures the ratio of USDT's market capitalization to the total cryptocurrency market cap.

To simplify, here's what you need to understand:

When USDT dominance decreases, it means more money is moving away from stablecoins and into other cryptocurrencies. This often signals growth in the crypto market, as investors are willing to take on more risk.

Importantly, whenever USDT dominance touches the white line on the chart, it usually signals a peak for Bitcoin (whether a local top or circle top).

However, the chart shows that USDT.D has not only reached the white line but also fallen below it, breaking a 7-year trendline.

What does this mean?

Frankly, no one knows for sure, but the general consensus is that Bitcoin may be having a super circle this run, which will be very bullish for crypto as a whole.

Here's another chart to consider.

Others.D tracks the dominance of all the coins in the market, excluding the top 10.

Like USDT.D, whenever Others.D touches the white trend line, it usually signals the start of an Altseason.

In summary, Bitcoin might be on a big tear this circle, with some referring to it as a "super cycle." While it's uncertain whether this will happen, if it does, it would be extremely bullish for the entire crypto market.

What is clear, however, is that Altseason has arrived, and the next few weeks are expected to be monumental!

Meanwhile, did you see the SEI's price movement over the weekend? It's up 30% since we first mentioned it here. We hope you got in before that run.

We will be covering the details tomorrow. Until then, enjoy the rest of your day.

🧱 Around The Block

• XRP, DOGE lead crypto losses as weekend pullback in Bitcoin causes $500M liquidations.

• Study: 76% of Twitter influencers promote dead memecoins.

• Cardano (ADA) shoots up by 23% daily to above $1, surpassing USDC.

• Dogecoin: A joke no more? The rise of a $58 Billion crypto phenomenon.

• Crypto miners in Texas’ ERCOT region are now required to report power demand.

That's all we've got for you today.

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Catch you soon.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.