ETH prices fell below $ 2,600 on February 24, and have been struggling to maintain meaningful recovery since then. According to CoingLass data, the latest modifications for $ 2,000 have caused more than $ 998 million in ETH futures within 15 days of liquidation of Leverated Long (BULL).
Traders now question what ETH should happen to cut more than $ 2,500.
ETHER/USD (left) Grand total ALTCOIN market cap (right). Source: TradingView / COINTELEGRAPH
The ether, as shown in the chart above, was 10% lower in the Altcoin market during this period.
More no longer followed the Memecoin craze, which improves Solana (SOL), the main competitor of Ether Leeum. This is an additional factor in the price of ETH, and it is necessary to solve the four major problems before Ether reclaims the bull market.
Ether Leeum’s upgrade and competition
In some cases, the upcoming PECTRA upgrade of the Etherrium network is less than necessary to lead the meaningful processing time, such as lowering the basic layer transaction fee or greatly improving usefulness.
Even if the change improves the user experience, the analyst claims that Ether Lee is lacking interoperability across different layers -2 solutions in terms of liquidity and user accessibility.
The recent report on the empty block of Ethereum testnet has been added to risk recognition when investors are already skeptical. Regardless of whether this problem is not related to the upgrade or easily fixed, some traders are worried that potential delays can recognize negative delays in the market.
In essence, fear remains dominant feelings, and some pressure problems must be solved in order to change.
Critics argue that some of the disappointment of ethical investors are due to the rise of indirect competitors such as the modular layer -1 berachain, which focuses on the liquidity and governance integration of the dispersed financial (Defi) applications.
7 -day protocol fee ranking, USD. Source: Defillama
Berachain has successfully arrested more than $ 3 billion deposits, as measured by TVL (Total Value Locked) of Defillama.
Similarly, Hyperliquid, a permanent gift application hosted in its own blockchain, surpassed the $ 2.8 billion interest in the Ethereum network, surpassing its competitors. In many ways, competition is growing beyond traditional models.
In order to restore the strength of the ETH, the trader needs to be confident that the Etherrium network provides a practical and clear advantage for the project and users. Ultimately, Ether Leeum focuses on decentralization and gradual improvement, reducing demand compared to competition regardless of justifiable.
Weak onChain activities and institutional demands
The lack of demand for institutional investors is clear from the Spot Exchange-Traded Fund (ETF) flow, and $ 460 million in negative results for 9 of the last 10 days.
Some analysts have suggested that demand can increase rapidly with the final approval of the Basic Staying of Etherum ETF, but this theory is not clear in that the ETH supply is increasing to 0.7%every year.
As demand for blockchain processing decreases, the image mechanism has decreased, and ether became inflation. As a result, the adjusted basic stage compensation is now less than 2.5%, and the deposit of Stablecoin calculates up to 4.5% in most defi projects.
Ultimately, the final inclusion of stew in the SPOT ETF will not be a game change of institutional demands.
relevant: Defi tvL decreases $ 45B, which is deleted after the Trump election.
Lastly, Traders are concerned that the US Securities and Exchange Commission can approve Solana ETF in 2025 and can directly compete for investors who can only access Ether and Bitcoin (BTC) ETF products.
Therefore, in order for the ETH price to reach more than $ 2,500, investors need clear evidence that Ether Limium will provide sustainable benefits beyond the first advantage.
In summary, the future of Ether depends on the Etherrium network upgrade, the increase in network use, the decrease in subsequent supply, and the frictional reduction of the layer -2 interoperability, allowing the entire ecosystem to get the benefits from its growth.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.