Ethereum's Financial Viability and Usage Trends Questioned by KookCapitalLLC
According to KookCapitalLLC, successful crypto traders focus on facts, stating Ethereum currently generates no revenue and its usage is declining. This analysis suggests Ethereum's anticipated price pump may not materialize, challenging the optimistic outlook of Ethereum enthusiasts.
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On March 26, 2025, a notable tweet from @KookCapitalLLC criticized Ethereum (ETH) enthusiasts, stating that ETH makes no money and its use is trending to zero. At the time of the tweet, ETH was trading at $3,450, a 2% decrease from the previous day's close of $3,520 (CoinMarketCap, 2025-03-26). The trading volume for ETH on this day was approximately $15.6 billion, which was a 10% increase from the previous day's volume of $14.2 billion (CoinGecko, 2025-03-26). The tweet sparked a significant amount of discussion and debate within the crypto community, with many users sharing their views on the future of ETH and its utility. The on-chain data showed that the number of active addresses on the Ethereum network was 450,000, a slight decrease from the 460,000 active addresses recorded the day before (Etherscan, 2025-03-26). Additionally, the total value locked (TVL) in Ethereum-based DeFi protocols was $50 billion, down from $52 billion the previous day (DefiLlama, 2025-03-26). This data suggests a potential cooling off in the Ethereum ecosystem, which could be attributed to the sentiment expressed in the tweet and the broader market dynamics at play.
The tweet's impact on ETH's price and trading volume was immediate and noticeable. Following the tweet, ETH experienced a sharp decline, dropping to $3,380 within an hour (TradingView, 2025-03-26 14:00). This price movement was accompanied by a surge in trading volume, with the hourly volume reaching $2.1 billion, a 30% increase from the average hourly volume of $1.6 billion in the preceding hours (CoinGecko, 2025-03-26 14:00). The ETH/BTC trading pair also saw increased activity, with the pair trading at 0.052 BTC, down from 0.054 BTC before the tweet (Binance, 2025-03-26 14:00). The ETH/USDT pair on the other hand, showed a similar trend, with the price dropping to $3,380 from $3,450 (Kraken, 2025-03-26 14:00). The market sentiment, as measured by the Crypto Fear & Greed Index, dropped from 55 (Neutral) to 48 (Fear) within the same timeframe (Alternative.me, 2025-03-26 14:00). This indicates a shift in investor sentiment towards a more cautious approach, likely influenced by the tweet and the subsequent price action.
From a technical analysis perspective, ETH was trading below its 50-day moving average of $3,550, signaling a bearish trend (TradingView, 2025-03-26). The Relative Strength Index (RSI) for ETH was at 42, indicating that the asset was neither overbought nor oversold (TradingView, 2025-03-26). The Bollinger Bands for ETH showed that the price was trading near the lower band, suggesting potential for further downside movement (TradingView, 2025-03-26). The trading volume, as mentioned earlier, increased significantly following the tweet, with the 24-hour volume reaching $15.6 billion (CoinGecko, 2025-03-26). The on-chain metrics further supported the bearish sentiment, with the number of active addresses decreasing and the TVL in DeFi protocols also declining. The correlation between ETH and other major cryptocurrencies like Bitcoin (BTC) and Cardano (ADA) remained strong, with ETH's price movements closely mirroring those of BTC and ADA (CoinMarketCap, 2025-03-26). This suggests that the broader market sentiment and macroeconomic factors were also influencing ETH's price action.
In terms of AI-related news, there were no significant developments on March 26, 2025, that directly impacted the crypto market. However, the ongoing advancements in AI technology continue to influence market sentiment and trading volumes. For instance, the AI-driven trading platform, TradeAI, reported a 15% increase in trading volume for AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) over the past week (TradeAI, 2025-03-26). This increase in volume can be attributed to the growing interest in AI and its potential applications in the crypto space. The correlation between AI developments and the crypto market remains a key area of focus for traders, as AI-driven technologies could potentially disrupt traditional trading strategies and create new opportunities for profit. The sentiment around AI in the crypto market remains positive, with many investors and traders looking to capitalize on the potential growth of AI-related tokens.
The tweet's impact on ETH's price and trading volume was immediate and noticeable. Following the tweet, ETH experienced a sharp decline, dropping to $3,380 within an hour (TradingView, 2025-03-26 14:00). This price movement was accompanied by a surge in trading volume, with the hourly volume reaching $2.1 billion, a 30% increase from the average hourly volume of $1.6 billion in the preceding hours (CoinGecko, 2025-03-26 14:00). The ETH/BTC trading pair also saw increased activity, with the pair trading at 0.052 BTC, down from 0.054 BTC before the tweet (Binance, 2025-03-26 14:00). The ETH/USDT pair on the other hand, showed a similar trend, with the price dropping to $3,380 from $3,450 (Kraken, 2025-03-26 14:00). The market sentiment, as measured by the Crypto Fear & Greed Index, dropped from 55 (Neutral) to 48 (Fear) within the same timeframe (Alternative.me, 2025-03-26 14:00). This indicates a shift in investor sentiment towards a more cautious approach, likely influenced by the tweet and the subsequent price action.
From a technical analysis perspective, ETH was trading below its 50-day moving average of $3,550, signaling a bearish trend (TradingView, 2025-03-26). The Relative Strength Index (RSI) for ETH was at 42, indicating that the asset was neither overbought nor oversold (TradingView, 2025-03-26). The Bollinger Bands for ETH showed that the price was trading near the lower band, suggesting potential for further downside movement (TradingView, 2025-03-26). The trading volume, as mentioned earlier, increased significantly following the tweet, with the 24-hour volume reaching $15.6 billion (CoinGecko, 2025-03-26). The on-chain metrics further supported the bearish sentiment, with the number of active addresses decreasing and the TVL in DeFi protocols also declining. The correlation between ETH and other major cryptocurrencies like Bitcoin (BTC) and Cardano (ADA) remained strong, with ETH's price movements closely mirroring those of BTC and ADA (CoinMarketCap, 2025-03-26). This suggests that the broader market sentiment and macroeconomic factors were also influencing ETH's price action.
In terms of AI-related news, there were no significant developments on March 26, 2025, that directly impacted the crypto market. However, the ongoing advancements in AI technology continue to influence market sentiment and trading volumes. For instance, the AI-driven trading platform, TradeAI, reported a 15% increase in trading volume for AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) over the past week (TradeAI, 2025-03-26). This increase in volume can be attributed to the growing interest in AI and its potential applications in the crypto space. The correlation between AI developments and the crypto market remains a key area of focus for traders, as AI-driven technologies could potentially disrupt traditional trading strategies and create new opportunities for profit. The sentiment around AI in the crypto market remains positive, with many investors and traders looking to capitalize on the potential growth of AI-related tokens.
kook
@KookCapitalLLCRetired crypto hunter seeking 1000x gems through BullX strategies