Well-known market analyst Ansem issued a sharp warning for Ethereum investors as, according to him, the fundamental value proposition of Ethereum is weakening and could lead to a collapse below the $1,000 mark by the end of the current year.
As Ansem points out, the “ETH thesis” has been consistently deteriorating over the past few years. Not only has Solana become the main hub of retail activity in this cycle, but Hyperliquid has also taken the lead in decentralized perpetuals trading. The idea of general-purpose rollups has failed to gain meaningful traction, and Vitalik Buterin has “publicly abandoned” this development direction.
Ethereum’s “safety” exchanged for real revenues in tech
Investor confidence is being undermined by the explosive growth of the artificial intelligence sector and tech stocks, adds Ansem. These assets offer “real revenue” and more attractive growth prospects compared to stagnating assets in DeFi protocols.
Even the current instability in the Aave ecosystem demonstrates the severity of the blow to Ethereum’s reputation as a “safe haven” for institutional capital. The situation around the Kelp DAO exploit and rsETH tokens, which resulted in approximately $292 million being withdrawn, has already led to around $6 billion in deposit outflows from Aave, as users rushed to secure their capital.
From Ansem’s technical analysis perspective, Ethereum is in a “prolonged downtrend” after failing to break multiyear resistance levels. The trader suggests opening short positions at current levels around $2,317, targeting a move below $1,000 by the end of 2026.
ETH price technical analysis by market analyst Ansem, Source: Ansem’s XThe “hard invalidation” level for the bearish scenario is set at $2,700-$2,800, but getting there requires the emergence of fundamentally new growth drivers within the Ethereum ecosystem.
Source: https://u.today/5-reasons-why-ethereum-could-hit-1000-top-trader-highlights-defi-exploits-and-weakening-bull-thesis
