Bloomberg commodity analyst Michael McGlone recently released a report that states that Ethereum's performance compared to Bitcoin has been promising despite the dismal price action of most risk assets in 2022.
The growth of Ethereum may have hit an inflection point after the transition to proof-of-stake in September, which means that it may gain ground against both Bitcoin and the stock market.
He also believes that a key support/resistance level for Ethereum is the $1,000-$2,000 range for the second largest cryptocurrency.
McGlone highlighted Solana's 97% drawdown as an example of speculative excesses in cryptos being purged after a frothy 2021. The major Ethereum competitor has been hit particularly hard by the collapse of the FTX exchange but has since recovered in light of the BONK airdrop.According to McGlone, it looks like cryptocurrencies are facing their first major global economic slowdown, but they may still come out victorious compared to traditional financial systems — particularly Bitcoin and Ethereum, which appear set to outperform even when the other declines.
With more people turning away from mainstream investing vehicles and adding crypto to portfolios, it looks like blockchain technologies will continue to expand and bring new opportunities throughout 2023, according to McGlone.
The price of Ethereum is trading at $1,247 at press time on the Bitstamp exchange. Bitcoin is changing hands at $16,808.