Ethereum’s price has drastically decreased this year, suffering a $244 billion decline in market cap, from $482 billion in November to $238 billion today. ETH has fallen below $2,000, with predictions indicating further drops.
Ethereum’s Leader Status Diminished
According to TokenTerminal, Ethereum is no longer the highest earning crypto, having gained $215 million this year, overshadowed by Tether’s $1.04 billion and Tron’s $700 million. Users are increasingly shifting from Ethereum to networks like Tron, which handles over $70 billion daily transactions due to its lower fees.
Ethereum users prioritizing security are turning to layer-2 networks like Base, Arbitrum, and Optimism, as these are acquiring market share despite Ethereum still leading in decentralized exchanges (DEX).
Spot ETH ETFs Struggling
The decline in Ethereum’s price coincides with spot ETH ETFs losing assets for four consecutive weeks, totaling over $703 million in losses. In comparison, Bitcoin ETFs amassed $45 billion, while Ethereum’s ETFs hold only $6.97 billion. Their decline is attributed to the SEC’s disallowance of staking, which has made direct holdings of Ethereum more appealing. Ethereum’s staking reward rate at 3.17% is also lower than other popular networks, prompting investors to opt for holding over ETFs.
Analysts have turned pessimistic, with Standard Chartered lowering Ethereum’s price forecast from $10,000 to $6,000.
Technical Analysis of Ethereum Price
The technical chart reveals a bearish sentiment for ETH, having formed a triple-top pattern with a neckline at $2,120, now breached. A mini death cross is forming, and ETH is at the 61.8% Fibonacci Retracement level, suggesting a possible drop to $1,250, approximately 35% lower from the current levels.
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