Ethereum Price in Decline

Ethereum price is in its third consecutive week of decline as investors remain cautious.

Ethereum (ETH) traded at $1,758 this week, marking its lowest level since October 2023. It has plummeted over 55% from its peak in November last year.

Reasons for Ether’s Decline

Ether’s downward trend can be attributed to several factors:
– Continuous outflows from Spot Ethereum ETFs, indicating a decrease in demand from Wall Street investors. Total outflows in the last three weeks exceeded $513 million, cumulatively bringing net inflows to $2.64 billion.
– Ethereum’s market share is shrinking in key sectors like stablecoin processing and decentralized exchanges. Tron (TRX) has overtaken Ethereum as the leading blockchain for Tether processing, while layer-2 networks like Base and Arbitrum gain traction.
– Ethereum is no longer the most profitable player in the crypto market, earning $210 million this year, significantly lower than networks such as Uniswap, Solana, Circle, Jito, Tron, and Tether.

Activity and Market Trends

According to Santiment, daily active Ethereum addresses have seen a decline. The address count dropped from 717,000 to 293,000 on March 12 this year. Social volume also continues to decrease.

Technical Analysis

The weekly chart indicates that Ethereum’s price is in freefall after meeting resistance at $4,000, forming a triple-top pattern. It has fallen below key support at $2,135, the neckline of this pattern.

Ethereum has dropped under the 50-week moving average and the ascending channel’s lower side, signaling that bears are in control. As it’s no longer oversold, further declines are expected. The Relative Strength Index (RSI) is at 33, suggesting downside potential. The Awesome Oscillator has also dipped below zero.

The likely direction for the coin appears bearish, with the first support target at $1,500. A breach below that could lead to a psychological drop to $1,000, representing a 45% decline from current levels. Conversely, a breakout above $2,500 could invalidate this bearish outlook.

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