Ethereum's Price Action Shows Positive Momentum Despite Criticism

Ethereum has once again come under scrutiny, particularly from Bitcoin maximalists like Samson Mow, who has publicly questioned the valuation of ETH. Mow, the CEO of JAN3, has been vocal about his views on ETH's price, arguing that the current price does not reflect the real underlying fundamentals of the project. He points out that while Bitcoin has seen a significant increase of 270% since January 2022, ETH has remained relatively idle, raising questions about its actual value. Both ETH and Bitcoin are navigating an uncertain macroeconomic environment, making discussions about Ethereum’s value even more critical.

Mow's criticism focuses on Ethereum’s supply structure. He highlights that a substantial portion of ETH was premined, resulting in 72 million tokens in circulation before public mining began. This high initial supply, according to Mow, distorts Ethereum’s valuation. He suggests that if there were only 21 million ETH, similar to Bitcoin, ETH would be worth $9,300. With Bitcoin's recent surge, the gap between the two leading cryptocurrencies has widened, reinforcing Mow’s views on the misalignment between ETH's price and its fundamentals.

Beyond Mow’s critique, ETH has also been influenced by external factors such as global trade tensions. These factors caused ETH to drop to a multi-year low of $1,380 before quickly rebounding to $1,680 following the U.S. announcement of a temporary tariff hold. This rapid price movement underscores the significant impact of the broader global economy on ETH prices. Given this context, it is essential to analyze ETH's price action to understand its potential future movements.

On April 12th, 2025, the market started strongly, with ETH rising consistently within an upward channel before peaking at $1,590. However, this price rise was short-lived as ETH immediately fell back after encountering resistance, indicating that sellers are still defending that level. Since then, ETH prices have been fluctuating sideways between $1,540 and $1,580, battling to break past the resistance level. Buyers have intervened several times to prevent the price from dropping much lower, with $1,540 serving as a stable floor. Despite this support, the upward momentum appears to have eased for the time being.

The Relative Strength Index (RSI) indicates powerful but brief bullish bursts, as it has repeatedly entered the overbought zone during the session. Prior to the appearance of a golden cross on the Moving Average Convergence Divergence (MACD), there was a definite oversold dip that caused a respectable bounce. Momentum has been fluctuating ever since, with a succession of death and golden crosses taking place. Currently, the MACD is once again in favor of the bulls, with a rising histogram and a new golden cross. However, caution is necessary because the RSI is back over 70, suggesting that the rally may have additional legs if buyers maintain the pressure.

Despite ongoing criticism from figures like Samson Mow, who question Ethereum’s valuation, the current price action suggests positive momentum. Recent technical signals indicate potential for Ethereum’s upside. With strong support near $1,540 and a golden cross on the MACD, Ethereum is nearing the breaking point of resistance at $1,590. The price moving sideways recently shows the fight between buyers and sellers, but the bulls are still in control. Even with continued skepticism around Ethereum’s value, the ETH price outlook remains positive. If buyers keep pushing for compression on the upside, another test of highs is possible in the future, despite bearish claims.