Ethereum Is in a Bear Market, But One Analyst Explains Why He's Long

Nowadays, it seems everyone is bearish on Ethereum and its Ether token except for Placeholder VC partner Chris Burniske, who, earlier this week, made the case for why he believes ETH/USD is a great long-term investment.

According to Burniske, the oft-cited narrative that the implosion of the ICO market led to Ether losing its use case is not entirely accurate.

Rather, he posits that Ether is going through its first "Mainstream bear market, just as Bitcoin did in 2014-2015.".

Ether's trading stance remains bearish Ether and Litecoin turned bullish in September 2018 and both foreshadowed what was to come from Bitcoin, which at the time was locked in a tight range around $6,500.

Daily volume is also screeching to a halt as Bitcoin's dominance continues to rise and Ether's dominance rate amongst altcoins has dropped from 10.53% to 7.76% over the past 3 months.

Clearly, traders are placing their long-term bets on Bitcoin instead of Ether.

Will a rising tide lift all ships?Currently, dark clouds are gathering on Ether from multiple vantage points and the saving grace might be an explosive rally from Bitcoin as Ether typically follows BTC price action.

Simply put, Bitcoin's growing dominance is sucking all the air from the room and altcoins, including Ether, are asphyxiating.

The Ethereum network has huge capacity and there are a number of prominent projects and institutions using the protocol or investing in Ether on behalf of clients.

Only time will tell if Burniske is correct about Ether being in a bear market.