Everyone Hates Ethereum… That’s The Point

Everyone hates Ethereum again, but we've been here before with Ethereum, but also with Bitcoin. And there's some interesting parallels here because in 2023, Bitcoin was the most hated asset in crypto. Down 70% from its highs, institutions nowhere to be found. FTX happened. Retail completely checked out. The narrative was very simple. The narrative was ever being screamed at the top of people's lungs on TV. Bitcoin has had its moment. The moment is passed. And anyone still holding Bitcoin was either diluted or desperate. It then ran from $16,000 to $126,000. Whoops. Guess everybody was wrong again. Right now, Ethereum is sitting at a 65% draw down. The weekly RSI printed its third lowest reading in the asset's entire history. Interesting. Now, institutions do hold four times more Bitcoin than Ethereum. The narrative is simple. The narrative is everywhere. Once again, nobody wants to buy Ethereum. Ethereum is broken. The fees are gone. The burn is dead. And anyone still holding Ethereum I mean, have you seen Vitalic recently? Anyone still holding Ethereum is diluted or desperate. Even the Ethereum Foundation's cashed out. I've seen this movie before. And the ending is not what bears think it will be. Look, I get it. I want to talk to you. If you have held your Ethereum through the cycle, it has cost you big time. Not just in dollars. Of course, you have the opportunity cost. You have the pit to your confidence. The specific exhaustion that comes from watching an asset that you believed in get completely lacked by everything around it. Bitcoin absolutely crushed it. Salana, what a run. AI stocks went parabolic. ETH, eh, sat there most of the cycle, grinding lower, generating headlines about dead fee revenue and broken tokconomics. Well, you questioned every assumption that you made when you first bought it. It's a problem. Yeah, Tom Lee came in, he bought some ETH, it sends it up to a new high, but only like $100. He waited years for that. The people who sold their Ethereum for Bitcoin in 2024 look very smart. The people who sold their ETH for Salana back at the start of 2023, genius. the people who rotated into Nvidia, Gigabrain [ __ ] Micron, absolute geniuses. And here you are still holding ETH or considering buying ETH perhaps wondering if you're the last person at a party that ended a long, long time ago. Now, that feeling, that specific combination of the conviction in an asset, but also the doubt and the exhaustion is exactly the feeling that has preceded the most violent reversals in investing history. Not because pain predicts recovery, because it doesn't, but because that pain is what produces the RSI reading that just printed. And that specific reading has a very interesting history. Now, here's what should stop you cold when you look at this RSI data. Because the two previous times that Ethereum printed readings lower than the one we just had, the context around each one tells you something uncomfortable where we might actually be in this cycle. Now, one of them, 2018, marked the exact bottom. The second one, 2022, came a few months before. It came in June before the FTX collapse happened. So, in theory, it should have been the bottom of that FTX collapsed. The black swan that nobody saw coming, but it did give us a crazy bullish divergence on the RSI that definitely nobody saw coming in June. The comparison to right now is not particularly reassuring if you're a bear, but it's also not as clean as the bulls want it to be either, which has a bit uncomfortable. Let's talk about the data. Third lowest weekly RSI reading in Ethereum's history. It was 2 weeks ago. now the second lowest at the bottom of the 2018 bare market. And the asset, for context here, the asset was genuinely believed to be finished. It was completely over. Why the hell would anyone buy Ethereum? The ICO bubble collapsed. Developers leaving. Building on blockchain, you're a [ __ ] idiot. The narrative had finished completely. ETH went on from there to 50x from that low. The lowest ever reading again June 2022. And that was of course right after Terara collapsed and the lenders collapsed and of course was not the final bottom and that came a few months later with the FTX collapse. What June 2022 produced was a massive RSI bullish divergence. Price made a new low. Momentum didn't in 2022. That divergence was the setup for everything that followed. Right now we have the third lowest RSI reading ever. Price has not confirmed a new low below the 2022 levels. The setup looks more like June 2022 than December 2022, which means we're either at or near the bottom or we get one more leg down that prints a massive bullish divergence the way the 2022 did. Neither scenario is particularly bearish on a 12-month time horizon. Now, overlay the Bitcoin 2023 comparison here. Bitcoin, let's go back in history. Bitcoin January 2023 had a few fewer gray hairs. Bitcoin was hated. It was down 70%. Institutions holding almost none of it. Retail completely washed out. Ethereum right now very similar situation completely hated down 65%. Institutions don't hold that much. I know Tom Lee's been buying a lot but if we exclude Tom Lee and look just at the ETFs it is underowned by Wall Street meaning that the rotation into Ethereum hasn't really happened at a meaningful way yet at the institutional level which gives us a lot of upside potential for it. Bitcoin when the tide turned in 23 had a crazy run from a very similar emotional and technical setup. The institutional rotation into Bitcoin was real and it was the fuel that took it to 126k. The retail FOMO that came in later on that was part of the accelerant. The technical setup that was the trigger. Now currently old man Ethereum's got all that stuff happening and it's a fuse that right now is sitting unlit. Where will the spark come from? Well, we're going to talk about that in a second. And if this video is making you feel like maybe you've been sleeping on one of the most obvious setups in crypto right now, well, I got good news for you because that feeling is kind of the point in the inner circle. That is the place where we talk about these exact kind of setups and we turn setups like this into specific actionable positions. So in the inner circle, this is our private investor and trading community. We make specific calls, specific trade setups with specific entries, specific stop- losses, specific take-profit orders. You also get weekly institutional grade reports. Now, this is not just on crypto. This is crypto and tech stocks. We got Micron Tech before it had a 450% rally. Members got positioned. They didn't watch the moves. They were inside of them. This is a community built for people who want to do the work. built for people who need help and want a community where they're going to get actionable insights and actionable data and cut through the noise. This is the community that you've been looking for. Plus, you get $80 monthly rebate from the guys over at Unix. A 7-day free trial. It's only 50 bucks a month. We will be increasing prices soon. So, grandfather yourself in. Click the link down below. Come. We're waiting for you. Now, here's what's different about this Ethereum setup versus every previous oversold signal. The fundamental catalysts aren't just coming. Literally, Ethereum has fundamentally never been stronger and they just keep arriving. Robin Hood chain, you might have heard about it. It's pretty popular right now. Robin Hood chain launched on Ethereum. It's an Ethereum layer 2. 23 million stock traders that use the Robin Hood app now have access to onchain finance through an interface that they already use and that they already trust. Ethereum is the native gas of Robin Hood chain. Bridged ETH jumped 70 times in one week. It's not a white paper. It's live. It's working. And it's bo backed by one of the most popular trading apps in the world, especially an app that is popular with younger millennial investors. And it's bringing a user base to Ethereum that cryptonative projects have been desperately trying to reach for years and it just can spend a circle of a circle jerk of pump and dumps. Sounds weird. Anyway, we also have lighter. They just process $1.6 trillion in perpetual swap volume without ever leaving Ethereum. Not a Salana number, not a centralized exchange number. Onchain on Ethereum. big numbers. 40 million Ethereum right now is staked. That's a lot of ETH. 300 coins are entering the staking contract right now for everyone that's leaving. Think about that. Let that sink in. Because it's not to say Ethereum staking is a one-way street, but with all that ETH going in, it takes a long time for all of it to come out because you can only unlock a certain amount of ETH every single day. The liquid supply is structurally shrinking while demand catalysts are multiplying. And two weeks ago, the ETH BTC ratio printed a bullish MACD crossover. That's a rare event and it's happening right now. A setup saying that ETH is likely to outperform Bitcoin in the months and years ahead. Now, the last time that signal fired, Ethereum actually outperformed Bitcoin by 132% in just a matter of a few months. It's firing again. The catalysts are live. Everything is lining up for Ethereum, so it's probably going to go down 50%. Ah, Vitalic, do something, ma'am. Look, these kind of setups on assets like this, but not super common. Everybody wants to buy at the highs. Nobody wants to buy when everything actually says to buy. Look, the setup is very interesting right now. And then we got this because all that stuff's great. Robin Hood chain's great, but there's still a lot of criticisms of the chain itself. Then on July 4th, Vitalic Buter published the most ambitious Ethereum road map since the merge. He called it lean Ethereum, and he was very explicit about the scope of this. This is Ethereum's biggest rebuild since the transition to proof of stake. Now, you might think, "Well, Lark, isn't this like taking the wheels off of a car speeding down the motorway at a 100 km an hour?" Yes, it's exactly that. And Ethereum has done it before, and they're going to do it again. Now, it's not just one upgrade, by the way, but it's a coordinated series of upgrades over three to four years, which will completely overhaul the entire Ethereum blockchain, touching almost every core component of the protocol. And there are three major priorities. The first is quantum resistance. Postquantum cryptography will be replacing vulnerable signatures before it becomes a threat. There's a 2029 timeline that aligns with Google's own security migration deadline. Ethereum is on that same timeline right now. Quantum will not be a problem for Ethereum. They're fixing it now. Number two, scalability. Recursive stark proofs enshrined at the protocol level. Significantly higher gas limits, dramatically lower fees. Cool. That's great. Everybody loves that. Number three is privacy. not as an add-on or an optional layer, but as a first class native feature built into the base protocol, which will make Ethereum a class of its own. Vitalic has compared the scope of this to the merge. He's framing this as the third major iteration of Ethereum, the version that makes it ready for the next decade rather than the last one. The bears are pricing ETH right now as a network in decline. Vitalic just published a four-year road map that describes a network rebuilding itself for institutional finance at the same time that financial institutions are doubling down on Ethereum in a way they've never seen before. AI agent infrastructure is growing all the time and a post-quantum world is coming for Ethereum. The market hasn't figured all of this out yet. The market is still pricing Ethereum based on some 2022 ideology. Now, here's what keeps me up at night about being bearish on ETH right now. In 2023, the people who sold Bitcoin at 16K were not stupid. They had real reasons. The narrative was genuinely terrible. The fundamentals, the case at that time required significant faith, let's say. and then they watched it then go to $126,000 while they held cash or chased other things. Maybe the other things they chased turned out well for them. If they had sold Bitcoin at 16K and bought Nvidia, they actually outperformed Bitcoin. So, it's not to say everybody was wrong. They just weren't selling at an opportune time. ETH right now at the third lowest RSI reading. The ETH BTC MACD cross performed 132% gain last time. Robin Hood bringing tens of millions of traders on chain to an ETH layer too where ETH is the gas. ETH is money on Robin Hood. Staking never been higher. The road map, it's in front of us. The most hated asset in crypto right now isn't some obscure altcoin. It is the second largest blockchain in the world, which massively underperformed last cycle. But that could change, and it could change real fast. This blockchain processes insane amounts of transactions, holds more stable coins than any other chain, and has a huge amount of developer activity. Perhaps we will get a Bitcoin-like cycle for Ethereum next cycle where it goes from the most hated asset to proving everybody wrong. ETH is hated right now. The rest it's just math.