Ethereum struggles to stabilize as key indicators suggest a potential bottom, while Bitcoin outperforms - IcoHolder.

Ethereum's price struggles appear to be stabilizing after a prolonged downturn, with key indicators suggesting a potential bottom may be forming. The cryptocurrency has been consolidating just above a critical support level at $1,600, following a brief but swiftly reversed dip to $1,400. This support zone has historical significance, having acted as both support and resistance from mid-2022 through late 2023.

On the ETH/USDT chart, analysts note that the quick recovery from the $1,400 level signals strong buying interest. The historical context adds weight to this support level, especially considering the June 2022 crash, which coincided with the FTX collapse and marked a cycle low for ETH at $880. At that time, the weekly RSI plummeted to an all-time low of 26.00. Currently, the RSI is showing its third-lowest reading ever, possibly indicating that Ethereum may be bottoming out once again.

However, the ETH/BTC chart paints a grimmer picture. Ethereum has been consistently losing ground to Bitcoin since September 2022, declining by 77% over that period. Despite repeated attempts by traders to call a reversal, the downtrend has persisted. The RSI on the ETH/BTC pair is now at its lowest level in history, which some view as a signal that a rebound could be imminent.

The broader concern is Ethereum’s perceived loss of relevance compared to Bitcoin. While Bitcoin continues to be favored as a store of value, Ethereum is facing growing competition from faster and more cost-effective layer 1 blockchains. This perceived utility gap may be influencing investor sentiment and contributing to ETH’s underperformance.

With the market potentially nearing an inflection point, all eyes are on Ethereum to see whether it can recover in the current crypto bull cycle. The coming months could prove decisive for the second-largest cryptocurrency by market cap.