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    Reasons To Remain Optimistic About Ethereum (ETH) After January’s Drop

    Image Source: alfernec / Shutterstock

    “We are not bullishly optimistic enough about Ethereum,” stated Vivek Raman, founder of Etherealize and former UBS bond trader, on January 29.

    More than a week has passed since Donald Trump’s inauguration, and Raman remarked that the “entire Ethereum ecosystem has undergone a transformation,” alluding to the recent leadership changes within the Ethereum Foundation.

    According to him, Ethereum is now experiencing “structural” instead of cyclical momentum heading into 2025. Nonetheless, that sentiment has yet to be reflected in the price movements of the asset as ETH anxiety persists.

    Reasons to Be Optimistic About ETH

    The Trump family’s DeFi initiative, World Liberty Finance, has been investing in and developing on Ethereum. Approximately 64% of the project’s $400 million portfolio is allocated to ETH and Lido-staked ETH (stETH), as reported by Arkham Intelligence.

    “Ethereum is the gold standard – the most secure platform for DeFi,” he explained, adding, “ETH is the primary reserve asset for the digital economy.”

    Raman pointed out that, on the buying side, asset managers and hedge funds are “enthusiastically all-in on tokenization,” emphasizing that “all paths for tokenization lead through Ethereum.”

    Moreover, investment banks are starting to adopt cryptocurrency capabilities. “And which is the safest, most secure blockchain with programming finance features? Ethereum.”

    A significant driver for Wall Street’s embrace of crypto is the repeal of SAB 121, legislation from the Biden era that limited banks’ ability to hold crypto assets.

    “Simply put, the floodgates are now open for banks to hold ETH, BTC, and tokenized assets on their balance sheets.”

    Finally, he projected that staked Ether ETFs may soon be launched under the new SEC chair, who is supportive of innovation, asserting, “Ethereum is becoming the new operating system for the global economy.”

    Persistent Weakness in ETH Price

    Investor and entrepreneur Ted Pillows noted that ETH is demonstrating ‘higher lows’ on a longer timeframe, with $4,000 being a critical resistance level.

    If that resistance is overcome, “I anticipate Ethereum could reach $9K to $10K within 3-4 months. Trump will continue to invest.”

    Analyst ‘Crypto Admiral’ concurred, stating, “Ethereum is on the brink of something significant.”

    At the time of writing, ETH has risen 2.3% on the day to settle at $3,200, although it remains 13.5% lower than its peak earlier in January. Unlike other altcoins that have surged and maintained a range, ETH has not followed suit.

    Nonetheless, February has traditionally been a bullish month for ETH, offering a glimmer of hope for investors after a challenging January for price performance.

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