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After what, I think, could be characterized as a positive close to the year for Ethereum USD (ETH-USD) in the final quarter of 2024, the market's second most valuable digital asset by market capitalization is off to
ETHE: Ethereum Is A Contrarian Trade
Summary
- Ethereum had a positive close to 2024 but is underperforming Bitcoin again through the first half of January 2025.
- Investment capital in traditional market products has turned negative for Ethereum, a concerning trend not seen with other digital assets.
- Despite clear problems with the demand for ETH through main layer gas, Ethereum has terrific liquidity and the largest stablecoin supply.
- Valuation is improving, and sentiment is terrible. I think Ethereum is a contrarian buy. As long as it charges 1.5%, I would not choose ETHE over other options.
Former media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTC-USD, ETH-USD, SOL-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I'm not an investment advisor.
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