Analysts are drawing parallels between Ethereum and high-growth tech stocks, while cautioning about potential vulnerabilities in its rally. Is ETH the new gold, or something else entirely?

Ethereum vs. Bitcoin: Analyst Compares ETH to '90s Tech Stocks as ETF Inflows Soar
Ethereum's surge has caught everyone's attention, but is it built to last? Recent analysis compares ETH to '90s tech stocks, highlighting both its potential and potential vulnerabilities.
Ethereum's Meteoric Rise: The Numbers
Ethereum (ETH) has been on a tear, boasting its best monthly return in three years, a staggering 56%. This surge outpaces Bitcoin's gains, which, while still impressive at over 10% monthly, are considerably lower. Over the last three months, Ethereum has gained over 113%, while Bitcoin is around 27%.
'90s Tech Stock Vibes: Analyst Weighs In
Bloomberg Senior ETF analyst Eric Balchunas is making waves by likening Ethereum to the tech stocks of the 1990s. He points to the strong inflows into spot ETH ETFs as a key driver of this performance. Unlike Bitcoin's narrative as “new gold,” Ethereum is seeing accelerating adoption and network growth, similar to early tech companies.
Spot Ether ETFs have recorded a 19-day streak of net inflows this month, marking a historical high. This reinforces the idea that altcoin ETFs operate more like '90s tech stocks than Bitcoin's “new gold” appeal.
The Coinbase Premium Index: A Warning Sign?
However, not all signals are bullish. The Coinbase Premium Index, which measures the price difference between Ethereum on Coinbase and other global exchanges, has plunged to its lowest level since May, reaching -0.01. This suggests a potential dip in demand from major American institutions, which could weaken the foundation of ETH’s rally.
Technical Indicators: Mixed Signals
Technical analysis adds another layer of complexity. While the On-Balance Volume (OBV) follows the bullish price trend, the Chaikin Money Flow (CMF) shows a bearish divergence, indicating weakening buying pressure. Ethereum is also evolving within a rising wedge, a pattern often considered bearish as it suggests a slowdown in bullish momentum.
For the bearish scenario to be invalidated, Ethereum’s price will need to break and hold above $4,024, a key resistance level. Otherwise, Ethereum could retest support at $3,510.
A Word of Caution
On-chain and technical signals suggest that Ethereum’s current rally might rest on more fragile foundations than it appears. The decrease in American institutional demand, combined with mixed technical indicators, points to an increased risk of a trend reversal in the short term. Investors would be well advised to remain vigilant against a potential bull trap.
The Bottom Line
So, is Ethereum the new gold, or the next Amazon? The truth, as always, is probably somewhere in between. While the '90s tech stock comparison is compelling, especially given the ETF inflows, it's crucial to stay grounded and keep an eye on those technical indicators. After all, even the most promising tech stocks can hit a bump in the road. Keep your eyes peeled, and happy investing!