Ethereum price performance is mirroring the downfall of Nokia according to a top market analyst. The largest altcoin struggles against its top rivals like Ripple (XRP) and Solana (SOL), which are gradually eating into its market share. Ethereum’s struggle follows reduced utility for ETH due to the prominence of layer 2 networks and lack of demand. Amid this shift, will Ethereum be the next Nokia and Solana the next Apple? Let’s find out.
Ethereum Price Mirrors Nokia Downfall
According to Crypto Curb, Ethereum price performance in the last four years looks similar to the rise and fall of Nokia. Just like Nokia, ETH has hit two main peaks in its history before crumbling to the present range lows. At press time, Ethereum struggled at two-year lows. This highlights failure to sustain high demand after its initial hype.
CryptoCurb went ahead and added that Ethereum’s main competitor is Solana, which will likely displace it just like Apple did Nokia. His analysis adds to the years-long discussion within the Solana community on when SOL will flip Ethereum price and market cap to become the largest altcoin.
The comparison of Ethereum and Nokia is based on several similarities. Just like Nokia, ETH saw much adoption, usage, and demand in its early years. However, it failed to evolve as fast as the dApp market grew, which created a gap that Solana filled with its low fees and fast speeds.
Ethereum Market Share Under Threat From Rival Solana
CryptoCurb’s analysis further noted that Solana is currently a third of the Ethereum market cap of $186 billion. The next target for SOL is to attain half of the market cap, which will place it on the path to overtake ETH.
He added that there was a minimal chance that the Ethereum price would recover due to weak fundamentals and being overpriced. Per CryptoCurb
“At some point, you have to look at the fundamentals over the technicals – ETH is still overpriced in comparison with its competitor (ETH at 3x the MC of SOL).”
However, other analysts defended Ethereum, adding that the altcoin still has room to recover. Cryptobetzzz noted,
“Comparing it to Nokia is just a little interesting. It’s a bit of a stretch but I do believe that it’s a scenario however an unlikely one.”
Into The Cryptoverse CEO Benjamin Cowen also slammed Solana maxis saying they failed to acknowledge that SOL is also headed for the same downfall as Ethereum. Per Cowen’s bearish Ethereum price prediction, SOL/BTC is following ETH/BTC, which recently reached a five-year low.
Ethereum Price Technical Analysis
Ethereum price is under intense bearish pressure and selling activity. The RSI on the weekly chart has made several lower lows. At the same time, the AO bars show that bears are gaining strength.
The only chance that this altcoin has to trigger a bullish Ethereum price forecast is if it bounces from the current demand zone between $1,500 and $1,600. Once it does this, it could pave the way for the next rally higher and possibly extend its gains past $2,000.
To sum up, Ethereum price has a negative outlook as depicted by the similarities between its performance and that of Nokia. As Solana gains market share due to its advantages over ETH, Ethereum could be displaced and lose its status as the largest altcoin.
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