The price of ETHER (ETH) fell to less than 2600 dollars on February 24, and has since been struggled to keep a meaningful recovery. The latest correction towards the level of $ 2000 led to more than 918 million dollars in long boxes (Bull) in future ETH contracts within 15 days, according to Coinglass data.
Traders are now wondering what to happen to ETH to break more than $ 2,500.
ETHER/USD (left) for the maximum Altcoin market (right). Source: Tradingvief / CointeleGRAPH
The ether was 10 % less than the performance of the Altcoin market during this period, as shown in the graph above.
The most related thing about, followed this retreat the madmen madness that strengthened the main ETHEREUM competitor, Solana (Sol). This indicates that the additional factors hinder the price of ETH, and four main issues must be addressed before ETHER can restore the emerging market.
Ethereum promotions and increased competition
For some, the upcoming Pectra upcoming on Ethereum is no less than what is required to pay a meaningful transformation, whether it reduces basic transactions fees or significantly enhances the ability to use.
Even if the changes improve the user experience, analysts argue that ETHEREUM still lacks inter -layer of different layer solutions, whether in terms of liquidity or access to the user.
Modern reports on empty blocks on Ethereum Testnet added to the perception of risks at a time when investors were already skeptical. Regardless of whether this problem has nothing to do with the upcoming upgrade or can be easily installed, some traders are concerned that any possible delay can be seen by the market negatively.
In essence, fear is still dominant feelings, and for this to change, many urgent issues must be resolved.
Critics argue that part of the disappointment of ETH investors stems from the rise of indirect competitors, such as berachain, the standard layer, which focuses on integrating liquidity and governance of decentral financing applications (Defi).
Classification of a 7 -day protocol, the US dollar. Source: Devillama
Berarachain has succeeded in seizing more than $ 3 billion of deposit, as it was measured in terms of Locked (TVL) on Defillalama.
Likewise, the Hyperlequid application, a permanent, hosted future application on its Blockchain, exceeded $ 2.8 billion of open interest, bypassing competitors on the ethereum network. In many ways, competition grows beyond the traditional model.
In order to restore the price of ETH bullish momentum, traders need to reassure that the ETAREUM network provides practical and clear advantages for its projects and users. Ultimately, ETHEREUM concentration on decentralization and additional improvements can be – whether it justifies it or not – the demand increases compared to its competitor.
Unchasin’s weak and institutional demand
It is clear that there is no demand from institutional investors in the flow of the exchange fund for exchange (ETF), which was negative in nine of the last ten days, which led to $ 406 million in net clouds.
Some analysts have suggested that the demand can eventually rise after the original deception of the ETHEREUM investment funds, but this theory is now less confident, given that the ETH offer increases by 0.7 % annually.
Low demand for Blockchain treatment reduced the mechanism of burning the list, causing the ether to become inflated. As a result, the modified original smoke bonus is now less than 2.5 %, while the deposits in Stablecoins resulted in 4.5 % in most Defi projects.
Ultimately, the final inclusion of roaming in the investment funds traded in metaphysics is unlikely to be a changing institutional demand.
Related to: Defi TVL decreases by $ 45 billion, erasing gains since the Trump elections
Finally, traders are concerned that the US Securities and Stock Exchange Committee may agree on Solana ETF in 2025, creating direct competition for investors who can currently reach ETHER and Bitcoin products (BTC) ETF only.
Therefore, in order for the ETH price to reach $ 2500 and beyond, investors need more clear evidence that ETHEREUM provides sustainable advantages that exceed the first engine feature.
In short, the future of Ether depends on ETHEREUM network promotions, increased network use, subsequent decrease in supply, and reducing friction in the second -layer interconnection of the second layer, ensuring that the entire ecological system benefits from its growth.
This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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