Coin Bureau’s Guy Turner is turning bearish on Ethereum (ETH) as the second-largest crypto asset hovers around 58% below the all-time high price reached in November of 2021.

In a new video, Turner tells 2.66 million subscribers of the Coin Bureau YouTube channel that Ethereum has underperformed Bitcoin (BTC) over the past couple of months, despite expectations that ETH would follow the flagship crypto asset’s lead and rally.

“Ethereum’s performance has been so poor that it’s basically become a meme while BTC has rallied to new all-time highs…

ETH has yet to reclaim its 2021 high of around $4,900. In fact, Ethereum is one of the only major altcoins yet to experience any price movements for us to get excited about. During this cycle, ETH’s price has struggled to break above the key resistance level of $4,000, significantly lower than its previous all-time high…

You only have to take a look at ETH’s price against BTC to see that Ethereum has been bleeding against Bitcoin since September 2022, with no signs of that slowing down. All in all, then, it’s not looking good, bro.”

Ethereum is trading at $2,066 at time of writing.

According to Turner, the competition both within and outside the ecosystem is one of the reasons Ethereum is underperforming.

“In the eyes of many, the biggest thing hurting ETH’s price is the massive number of layer-2s within Ethereum’s ecosystem…

…many believe that liquidity fragmentation is the biggest reason why ETH’s price has underperformed. And layer-2s have arguably stolen some of the venture capitalist mind share…

…another challenge for Ethereum – and that’s the growing competition from those aforementioned Ethereum killers. For anyone unaware, these are smart contract blockchains that threaten Ethereum’s dominance by effectively offering an alternative to Ethereum. Now, some of the leading Ethereum-killers by market cap include Solana, BNB Chain, Aptos, Avalanche and Sui, among many others.”

Turner further says that the macroeconomic landscape is also negatively impacting Ethereum’s price.

“Another major challenge comes from the macro environment, specifically high interest rates. That’s because higher interest rates are reflected in government bonds, which are popular among institutional investors…

…the yield on US government bonds is 4.28%. Meanwhile, ETH staking offers a yield of just 3%. This means that institutional investors who love earning a consistent yield are much more inclined to stick with government bonds as a result.”

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