Crypto analyst Adam (@abetrade) has sparked substantial debate by declaring that Ethereum is “the most cursed coin in existence,” suggesting that despite a notable uptick in overall market interest, the second-largest cryptocurrency remains stubbornly below its potential.

Why Ethereum Seems To Be Cursed

Speaking to his 178,000 followers on X, Adam pointed to a striking increase in Ethereum-related open interest, remarking: “ETH having the title of the most cursed coin in existence is well deserved because open interest in coins increased by 110% since August, yet the price is trading 20% below the 2024 highs; that’s genuinely quite bad.”

In his view, this divergence between trader enthusiasm and the coin’s ongoing price stagnation indicates a fundamental gap that cannot be explained away simply by market volatility. He underscored that this dynamic seems to have brought about a paradox: while higher open interest often suggests growing market confidence, Ethereum’s price trajectory has failed to mirror such optimism, potentially because of selling pressure from the spot market.

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Adam went on to characterize many of Ethereum’s most faithful supporters as “delusional,” – especially those who are still longing ETH on the futures market – pointing out that they appear ready to increase their ETH holdings whenever the asset’s value dips. Though his stance was critical, he also acknowledged that this resilience from buyers could set the stage for a more pronounced future move.

“At the same time, you can see how delusional these people are, and instead of giving up, they rather buy more every time they have a chance,” he said, capturing both his skepticism toward what he interprets as blind faith and his recognition of a potential trading opportunity in the making.

By presenting two possible scenarios—one in which a sudden liquidation event could drive ETH below the $3,000 threshold and another in which the market holds steady until a potential “blind bid” around $2,700—Adam outlined the triggers he believes could define Ethereum’s medium-term trajectory.

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“Because I am some of a retard myself, I think this could set up as a great long with two possible plays, one being a liquidation event sub $3k; if that does not happen, I will probably bid sub $2.7k blindly as we have quite clear support there,” he explained, indicating a willingness to position himself in what he perceives as a high-risk, high-reward environment.

This viewpoint of patience and strategic entry has resonated with other technical analysts, notably Ali (@ali_charts), who weighed in with a relatively similar price range in mind. “$2,700 to $2,800 sound like a probable scenario,” Ali stated, reflecting a sentiment that Ethereum may be poised for a correction to around these levels before any significant rebound can take place.

Expanding on this, he stated that Ethereum might be tracking along an ascending parallel channel, where temporary price dips can serve as catalysts for larger movements. “If Ethereum is following an ascending parallel channel, a dip to the lower boundary at $2,800 could act as a launchpad for a move toward $6,000,” he commented.

At press time, ETH traded at $3,082.

Featured image created with DALL.E, chart from TradingView.com

It has been a pretty rough start this year for Bitcoin 2022 as the BTC price corrected more than 10% in the first 12 days of January. On the technical chart, Bitcoin is approaching the death cross pattern that suggests that we might be heading for further pain ahead.

The death cross appears whenever the asset’s price over the last 50 days drops below that of its 200-day moving average. This signals that the momentum is headed downwards. Mati Greenspan, founder of Quantum Economics noted that Bitcoin is approaching a similar death cross pattern later this week. “The chart is pretty clear,” he said.

Bitcoin’s Track Record Around Death Cross

Although the death cross indicator hints at a bearish momentum, Bitcoin’s track record with the death cross remains mixed. Bitcoin managed to overcome the death cross risks during March 2020 and June 2021 and later surged higher to form a golden cross. However, in November 2019, Bitcoin started trading lower a month later following the death cross. Speaking on this matter, Greenspan told Bloomberg:

“Some people say it’s bearish, but for Bitcoin, just about all previous death crosses or golden crosses have proven to be a good buying opportunity, along with any other indicator under the sun for everyone who entered before 2021”.

Juthica Chou, head of OTC options trading at Kraken also added: “The history is really mixed — there’s no surprise given that some of the macro backdrop is affecting price action, but we’ve seen a healthy bounce over the last 24 hours. And I think the fundamentals are still really strong.”

After moving downside the last week, Bitcoin has been showing green shoots over the last two days. Moving away from the death cross, Bitcoin has gained 5% from the $40,000 support levels. Thanks to the strong miner accumulation! As of press time, Bitcoin is trading at $42,698 with a market cap of $806 billion.