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In today’s episode:

• ✍️ ETH Holders, Don’t Lose Hope! 3 Bullish Catalysts You Can’t Ignore

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ETH Holders, Don’t Lose Hope!

Let’s give some hope to our ETH holders instead of just being bearish all the time…

Ethereum has been taking a beating lately, dropping 13% in just a few days and hitting a 17-month low of $1,744. If you’re feeling the pain, you’re not alone. But before you throw in the towel and move everything into cash or short-term bonds (like the scared money out there), let’s talk about why ETH could be gearing up for a strong comeback.

Here are three reasons why Ethereum might outperform its rivals once this market gloom lifts:

1. ETH’s Drop Was Overdone (And That Means a Bounce Is Coming)

Markets love drama. When fear kicks in, traders overreact, and that’s exactly what happened with ETH. Between March 10 and 11, a staggering $235 million in leveraged long positions got liquidated, leading to a panic sell-off. ETH tanked to levels we haven’t seen since late 2023.

Now, here’s the good news: Whenever the market overshoots on the downside, a snapback rally usually follows. Right now, ETH needs a 29% pump to reclaim $2,500, and while that won’t happen overnight, it’s a reasonable target once the dust settles.

Another key indicator? The futures market. Right now, the annualized funding rate is just 4.5%—below the 5-10% range that’s expected in neutral markets. This tells us that bullish conviction is weak… but weak conviction means there’s plenty of room for a rebound once confidence returns.

2. Ethereum’s Layer-2 Ecosystem Is Booming

A lot has changed since ETH hit its all-time high of $4,868 in late 2021. Back then, high gas fees (over $50 per transaction!) were a massive issue, and Ethereum’s layer-2 ecosystem was almost non-existent.

Fast forward to today: Ethereum L2s are thriving. Networks like Arbitrum, Optimism, Base, ZKsync, and Blast are processing three times the number of transactions as Ethereum’s base layer. And even if 80% of those are just bot transactions, the remaining real activity is still significantly higher than before.

What does this mean for ETH? It’s simple: The network is growing, transactions are cheaper (a token swap recently cost just $1.70), and adoption is increasing. That’s a winning formula for long-term strength.

3. Ethereum Is Still the Institutional Favorite

Despite all the competition from Solana, Avalanche, and others, Ethereum remains the second-most popular crypto asset for traditional finance players, just behind Bitcoin. Need proof? Check out the numbers:

• Ethereum spot ETFs already hold $8.9 billion in assets.

• Solana and other competitors? They’re still waiting for ETF approval.

• The Grayscale Ethereum Trust (ETHE) has been publicly traded since 2019—giving ETH a first-mover advantage in traditional markets.

And let’s not forget DeFi. Ethereum’s total value locked (TVL) just hit a 20-month high, climbing to 24 million ETH. That’s thanks to a surge in liquid staking, lending, yield farming, and real-world asset tokenization.

Oh, and Ethereum also just reclaimed the #1 spot in decentralized exchange (DEX) volume, hitting $20.5 billion in weekly trading, beating Solana’s $13.9 billion.

The Bottom Line: ETH’s Next Move?

Yes, Ethereum’s price took a nasty hit, and macro conditions still suck. But if you zoom out, the fundamentals are stronger than ever. Layer-2 scaling is exploding, institutions still love ETH, and DeFi activity is surging.

Will ETH reclaim $2,500 soon? It depends on broader market conditions, but once the panic subsides, ETH looks well-positioned to lead the charge. So, ETH holders, take a deep breath. The future isn’t as bleak as the recent price action suggests.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.