Ethereum — Is It Still Worth Investing In?
2Z Capital - Multi Asset Analysis9 min read·Just now--
Ethereum has become one of those projects that today receives more criticism than hype. And that’s interesting, because we’re still talking about a network with an enormous market cap, massive infrastructure, and an entire ecosystem built on its foundations.
There was a time when Ethereum felt synonymous with the future of crypto. Today, more and more people are asking:
Does that future still exist — or has the story slowly lost its direction?
While some argue that ETH is becoming slow, expensive, and overly complicated, others believe the market is massively underestimating its real value.
So where does the truth actually lie?
Does Ethereum still have the potential to lead the next major cycle? Where is ETH really heading? And maybe the most important question of all…
Is Vitalik still the visionary genius who sees years ahead of the market — or has he lost touch with the industry he helped create?
Let’s break it down, step by step, and analyze our old friend — Ethereum. 🔍
The Fundamentals Behind Ethereum
Ethereum today is no longer just another crypto project. It has become a form of digital infrastructure on which a large part of the modern blockchain economy operates.
And that is exactly why it is so interesting to see how much negative sentiment has recently formed around ETH. While some argue that Ethereum is becoming too slow, expensive, and overly complicated, others believe the market is seriously underestimating how important its network still is.
Because despite all the criticism, the reality is that most of the DeFi ecosystem, stablecoin activity, and serious blockchain applications still revolve around Ethereum. That is not something built overnight — and it is certainly not something competitors can easily replicate.
Ethereum also continues to have one of the strongest developer communities in the entire industry, and in the long run, developers are the ones who create real ecosystem value. At the same time, competitors like Solana and Sui are putting increasing pressure on the market through faster networks, lower costs, and simpler user experiences.
That is why Ethereum is no longer in a phase where it needs to prove it can survive. Now it needs to prove it can remain dominant.
What makes ETH fundamentally interesting is its economic structure. A large portion of the supply is locked through staking, while the burn mechanism gradually reduces the number of tokens in circulation, giving Ethereum a far stronger economic foundation than many people are willing to admit.
In the end, perhaps the most important question is not whether Ethereum looks strong or weak today. The real question is this:
If the world truly moves toward tokenization, stablecoin infrastructure, and digital finance — can that future realistically function without Ethereum? 🔍
Support & resistance
Technical Structure — Where Does ETH Stand Right Now?
Before we even move deeper into macro, sentiment, or alternative scenarios, it is important to first understand what the higher time frame charts are currently telling us. And honestly, the structure here becomes very interesting.
The first thing that stands out on the 2W chart is the existence of two major long-term support zones. The first one is the 200 EMA, currently sitting around the $1,900 region, while the second — and much more critical support zone — lies between $800 and $1,400.
At the same time, the 1W chart shows Ethereum approaching a very serious resistance area between $2,500 and $2,800. Why is this zone so important?
Because this is where the 50, 100, and 200 EMA lines begin to compress and intersect with each other — something that statistically tends to create extremely heavy resistance on higher time frames.
Historically speaking, markets rarely break through this type of technical structure without first experiencing a stronger rejection into lower price zones. And that is exactly why this region deserves close attention.
If we isolate only the 2W and 1W chart structures for a moment, the probability currently leans toward a scenario where Ethereum gets rejected from the $2,500–$2,800 resistance zone and rotates back into the marked red support area between $800 and $1,400.
Of course, technical structure alone is never enough for a complete conclusion. That is why, in the next sections, we will continue filtering this scenario through additional methods, indicators, and broader market analysis. 🔍
Elliott Waves Analysis
Where Are We in the Cycle?
Once we bring Elliott Wave analysis into the picture, the overall structure starts becoming even more interesting. 🌊
Based on the current wave count, what I personally see is Ethereum being in the process of building the B corrective leg of a larger Wave II cycle (marked in yellow). In other words, the current market behavior still looks more like a corrective rally rather than the beginning of a completely new impulsive bull trend.
In these types of structures, B waves often create the illusion of strength before the market continues into a deeper correction. That is why it is extremely important not to analyze the current upside move in isolation from the broader structure.
According to my current scenario, Wave B may still have room for an additional extension, potentially reaching the $2900 region. However, these are also the types of zones from which stronger downside continuation and the completion of the broader Wave II corrective cycle often begin.
If we additionally look at the white Fibonacci projection zone for Wave II (yellow), the lower boundary currently sits around the $1000 level. Of course, markets can always extend deeper than expected, but such scenarios usually require extreme events and panic-driven market conditions — similar to what we witnessed during the FTX collapse.
And this is where the analysis starts becoming particularly interesting.
When we combine:
- Support & Resistance structure
- EMA resistance cluster
- Elliott Wave count
- Fibonacci projections
we begin to see a very strong overlap between the projected zones.
And in serious market analysis, these kinds of confluences often matter the most. Because when multiple independent filters start pointing toward the same area, the market is usually telling us to pay close attention there.
Let’s continue. 🔍
Indicator Analysis
What Are the Higher Time Frames Telling Us?
Indicators are often misunderstood in market analysis. Used alone, they can easily create confusion and false signals. But when combined with structure, Elliott Wave analysis, support and resistance zones, and broader market context, indicators become extremely powerful confirmation tools.
Because in the end, price can temporarily deceive people. Momentum usually does not.
And that is exactly why higher time frame indicators matter so much. They help us understand whether the market is truly building strength beneath the surface — or simply creating temporary optimism inside a larger corrective structure.
1 Week Chart (1W)
Looking specifically at the 1W chart, Ethereum slowly starts showing signs of losing momentum. Why do I think that?
The biggest reason comes from the Stochastic Momentum indicator, which already showed a significant exhaustion signal despite ETH producing only a relatively modest price recovery. In strong bullish environments, markets usually generate much larger price expansions before momentum indicators begin looking exhausted.
That weakness is further supported by the Squeeze Momentum indicator, whose current structure and negative momentum behavior continue suggesting underlying fragility rather than aggressive bullish expansion.
At the same time, the RSI remains relatively indecisive and does not provide a particularly strong directional signal at the moment. The MACD, despite showing a bullish cross, also still lacks the type of momentum expansion that would normally support expectations for a major upside continuation.
And this is where the entire picture starts becoming important.
When we compare these indicators together, Ethereum currently does not appear to have enough strength for a major sustained move higher. At least for now, the broader indicator structure simply does not support the idea of an aggressive bullish breakout from the current conditions.
In other words, the market still looks far closer to exhaustion than to the beginning of true euphoria. 🔍
2 Week Chart (2W)
Once we move to the 2W chart, the picture starts becoming more interesting. Unlike the 1W time frame, which is currently showing considerable weakness, the 2W structure already shows a certain desire from the indicators to begin building a bullish setup. 📈
Momentum is slowly attempting to turn upward, and several indicators appear to be preparing for their first more meaningful bullish signals. And that is exactly why this time frame deserves special attention.
However, there is one very important problem here.
The current 2W candle has only just begun forming, and there are still 13 out of the full 14 days remaining before the candle closes. And in crypto markets, two weeks can be an extremely long period capable of completely changing both market structure and sentiment.
Because of that, I still do not view these potential bullish signals as confirmed. For now, what I mostly see is the market attempting to shift momentum — not actual confirmation that a true reversal is already taking place.
And this is where the relationship between the 1W and 2W charts becomes extremely important.
If the 1W chart continues showing bearish signals and weakening momentum, it could very easily invalidate all of the current bullish hopes forming on the 2W chart before the candle even closes.
At the same time, despite these early recovery attempts, I personally still do not see room for major impulsive upside moves until we begin seeing clear bullish divergences forming on the RSI and Momentum indicators across the higher time frames. Historically, those types of divergences are often among the first serious signals that the market is genuinely building long-term strength beneath the surface.
And for now, Ethereum simply has not provided enough confirmation that such a scenario has already started developing.
In other words, Ethereum currently remains in a very sensitive zone where the market is trying to show the first signs of recovery — but still lacks enough confirmation for that scenario to be considered reliable. 🔍
1 Month Chart (1M)
When we finally zoom out to the 1M chart, the picture becomes much simpler. And honestly, there is currently nothing particularly special happening there.
The higher time frame indicators still do not show the type of behavior that would normally suggest the beginning of a major macro reversal or a new long-term impulsive expansion phase. Instead, the structure continues looking far more consistent with a broader continuation of the corrective cycle.
The biggest reason for that is the lack of any meaningful momentum shift.
At the moment, the indicators on the monthly chart simply do not show strong evidence that long-term bearish pressure has fully exhausted itself. There are still no major bullish divergences, no aggressive momentum expansion, and no clear signs that buyers are taking control on a macro level.
And that is extremely important.
Because sustainable long-term bull markets usually do not begin quietly. They often begin with very visible shifts in momentum, strength, and participation across the higher time frames.
For now, Ethereum still does not appear to be there yet.
In fact, based on the current structure, the 1M chart still looks much more aligned with the possibility of continued downside pressure rather than the beginning of a completely new bullish cycle. 🔍
Is It Worth the Trade or Investment?
I’ll try to keep this part as short and direct as possible.
Based on everything we’ve seen so far, Ethereum currently looks like very slippery terrain. From a long-term perspective, I still believe there is room for further downside.
What could easily confuse potential investors, however, is the current Wave B structure, which still “promises” the possibility of a move toward the $2900 region. And realistically, that scenario is still possible.
For traders who are comfortable taking on higher risk, there may still be an opportunity to trade that upside move. But personally, I do not view those price levels as sustainable in the long run unless Ethereum first experiences a much deeper corrective phase.
At least for now, the broader structure still looks far more corrective than structurally bullish. 🔍
