Michael Saylor argues that investor confidence in Ethereum (CRYPTO: ETH) has collapsed as the token fights Solana (CRYPTO: SOL) and BNB (CRYPTO: BNB) in a battle that has drained all three of their monetary premium.

Saylor Says Bitcoin Dominance Climbed From 41% To 70% While ETH Lost Its Premium

Excluding stablecoins, Bitcoin’s (CRYPTO: BTC) market dominance climbed from roughly 41% in 2021 to nearly 70% today, Saylor said at the Bitcoin Corporate Day event on June 15.

ETH, SOL, and BNB have competed so intensely against each other that none retained a monetary premium, meaning each now depends purely on utility to justify its valuation.

Saylor framed the past 12 months as confirmation of three things: Bitcoin’s dominance as a digital monetary network, its role as digital capital, and the viability of digital credit. 

His comments arrive as ETH is on track for three consecutive red quarters for the first time in its history.

On-Chain Metrics Suggest ETH May Be Entering A Bottoming Phase

Despite the bearish narrative, pseudonymous analyst Ardi pointed to several metrics lining up with prior cycle bottoms. 

The blue lower acceptance cloud on ETH’s chart has marked macro lows in every prior cycle, and the June flush to $1,500 produced the first touch of that band this bear market. ETH’s daily RSI also hit 11 during that flush, the lowest reading since Ethereum’s inception.

Weekly RSI sits at 31, just above the below-30 threshold that in prior cycles preceded recovery phases. 

Ardi cautioned that true capitulation likely arrives once that weekly condition is fully met, but noted ETH bottomed six months before Bitcoin in the last cycle, leaving open the same sequence repeating.

ETH Short Squeeze Building With $110M In Shorts Liquidated In 24 Hours

The SAR flipped bullish at $1,517, well below current price, the clearest technical signal of a trend shift since May’s collapse from $2,400. 

Volume surged 119%, options volume exploded 203%, and $110 million in shorts were liquidated over 24 hours against just $23.9 million in longs. 

Open interest rising 9.12% alongside price confirms new money entering long.

Clearing the 20 EMA at $1,789 with volume accelerates the squeeze toward $1,965 then $2,121. Losing SAR support at $1,517 retests $1,570 then $1,400.

Image: Shutterstock