The price of Ethereum is facing difficulties this year even as Bitcoin remains near all-time highs and optimism continues in the cryptocurrency industry. ETH was trading at $3,400 on Friday, down about 15% from its highest level this year. These charts explain why the price of ETH has been in trouble this year.
Ethereum price has formed a triple top pattern
The first chart is the weekly chart, which shows that ETH price found significant resistance at around the $4,053 level. A closer look shows that it failed to move above this price at least three times, forming a triple-top chart pattern whose neckline was at $2,112.
The triple top is one of the most bearish chart patterns in the market. In this case, it means that ETH is still at risk as long as it remains below the $4,000 level.
On the positive side, there is a possibility that Ethereum has formed an inverse head and shoulders pattern, which is a common bullish reversal sign.
All this means that the Ethereum price needs to move above the $4,000 level. It will remain at risk of further declines until that happens.
Ethereum fees have crashed
For a long time, Ethereum has been the most profitable player in the cryptocurrency industry due to its high transaction fees and activity levels. It has also been the most dominant player in key industries such as stablecoins and decentralized finance.
Ethereum has now lost market share in these industries and its network fees have declined. The chart below shows that the Ethereum network generated $122 million this year. While this is a significant amount of money, it is less than what other networks such as Tether, Tron, Jito, and Solana have made.
Tether has already generated more than $275 million in fees this year. The other three have grossed more than $204 million, $184 million, and $167 million this year. This means that the performance of the Ethereum network is not good, a trend that may affect its price in the long term.
Ethereum has lost market share in the DEX industry
Meanwhile, Ethereum has been the most dominant player in the DEX industry leading its mainnets such as Uniswap, Curve Finance, Fluid, and Balancer.
But that has changed these days and Ethereum is no longer the king of the DeX sector. Solana has handled over $227 billion in volume in the past 30 days, supported by the strong performance of the likes of Trump and Melania’s official currencies.
Ethereum, on the other hand, transacted $80 billion in the same period. This means that Solana’s trading volume was 2.5 times higher than that of Ethereum, which was unheard of a few months ago. The chart below shows that Solana’s volume has surpassed Ethereum’s DEX volume.
Ethereum balances are rising
Another chart that shows why Ethereum’s price is suffering is rising balances on centralized exchanges. CoinGlass data shows that these balances have jumped sharply in the past few months. It now has 16.05 million Ethereum on exchanges, the highest level since November last year and up from 15.30 million a few months ago.
High exchange balances are a sign that many investors are selling the currency. Therefore, there is a possibility that the currency will continue to decline if this trend continues.
Ethereum ETF Flows
Another chart to watch is the Ethereum ETF trends. This chart shows that these funds had a net outflow of about $15 million on Thursday. These funds achieved net inflows of $2.7 billion Since its inception, it now owns more than $11.8 billion.
In contrast, Bitcoin ETFs added more than $188 million on Thursday and added $39 billion in net assets. This influx of funds shows that institutional investors are not interested in Ethereum.
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