The fixed ETHEREUM price has lasted in the past few weeks. ETH was traded at $ 1615 on Sunday, a point that remained for about two weeks. Her performance was worse against other cryptocurrencies like Bitcoin and Solana. ETH/BTC’s pair has moved to 0.018, its lowest level since 2019, while ETH/Sol crashed to the lowest level in the record.
Why the Ethereum price shattered
There are many reasons why Ethereum has exploded in the past few years. First, there are signs that the Wall Street investors are not enthusiastic about ETH federations as shown by the measures of flows. Data shows that Spot Ethereum ETFS has had clear flows in the past eight weeks in a row.
All ETHEREUM Investment Funds contain only $ 5.27 billion of assets, which are much lower than Trust ethereum Trust before the conversion. Etha of Blackrock owns $ 1.87 billion of assets, while Ethi and Eth Grayscale has $ 1.85 billion and $ 721 million, respectively. Other large ETH investment funds are sincere, bitwise, and VANECK.
A possible reason for all of this is that investing investment funds are not receiving any vibrant fees. As such, ETHEREUM fans prefer to buy and avoid ETH to avoid ETF fees and make a monthly return.
Second, the Ethereum Foundation, which supervises the network, has been criticized in the past few months. The symbols were thrown in ETH and exceeded management issues. Recently, the Foundation has appointed a new leadership team as it seeks to restore the network for the future.
Read more: prediction at ETHEREUM price: short -term fluctuation amid long -term rising signals
Layer 2 growth networks
Third, ETHEREUM continues to face a great competition from Layer-2 networks on the network. Layer 2 is an independent chains that operate over the ETHEREUM series. They are advancing by ensuring that they have superior treatment speeds and low costs.
These chains are very common in the encryption industry. For example, the Base attracted 496 developers, while the total value (TVL) jumped to more than $ 3.7 billion. Its total physical assets is $ 10.6 billion, while the maximum Stablecoin market is $ 4.1 billion.
Arbitrum has become a high -layer 2 -layer network with more than 795 Defi apps, $ 2.6 billion of assets, and $ 10.5 billion in stereotypical assets. It has a market value that is more than $ 2.86 billion.
The risk of ethereum is that these chains pick up the market share and take the fees you should take.
One of the effects of all this is that Ethereum is no longer the most profitable series in the encryption industry. It has achieved only $ 235 million of fees this year, while Tether has made $ 1.5 billion so far. Justin Sun Tron has made more than $ 992 million this year.
Read more: Ethereum has been set for a large price return in 6 months and one year. Should investors buy the decline?
Technical analysis of Ethereum price
ETH price scheme | source: Tradingvief
The basics indicate an additional decrease in the price of ETH this year. To some extent, the principles of tracking the trend indicate that the price of Ethereum will continue to decrease as it remains less than all the moving averages.
On the positive side, however, it is that PRICE ETAREUM has formed a falling shed pattern, which is a famous thunderbolt mark in technical analysis. The two lines approaches this pattern of their meeting, indicating that the upward collapse is about to happen. If this happens, the next point to be monitored will be $ 2,140, an increase of 33 % of the current level.
The main support is at $ 1,385, which is the lowest level this year, will nullify the budget opinion and indicate more declines.
