ETH prices have fallen below $ 3,500 on January 7, and have been struggling to go beyond that level. Altcoin has decreased 8% over the last 30 days, while the larger Cryptocurrency market capitalization has increased by 6%. This achievement is associated with the launch of ether investors, especially in July 2024, SPOT ETEREUM Exchange-Traded Fund (ETF).
Etter/USD vs. Capitalized capital. Source: TradingView / COINTELEGRAPH
The disappointment of the traders occurs after the average Ether Leeum transaction fee exceeds $ 2, after the constant criticism of the ETH supply, the lack of support for the Etherum Foundation, and the conversion of the conversion, which is a conversion to Solana, especially to Solana.
Some elements can potentially push ethers to more than $ 3,500, but some depend on external elements such as regulations.
PECTRA upgrade, US ETF regulations and layer -2 growth changes
After the release of the official Trump (Trump) memo in Solar or Network, the early excitement of the Crypto -friendly US presidential election quickly disappeared. The token made more than $ 12 billion in trading in the first 48 hours, and the market capitalization rose to more than $ 14 billion, leading to a significant inflow of new users in Solana.
President Trump has approved the Trump Memoin through a social media post after an amazing ether investor after the previous NFTS (NON-Fungible Tokens) related to Trump. However, Ether’s price has already increased 26.8% in the fourth quarter of 2024, while overall Cryptocurrency market capitalization has increased by 44.6%.
Ether’s weak momentum increases the competition between OnChain and deposit.
Total value lock (TVL) market share. Source: Defillama
For example, Solana has become a major blockchain of distributed exchange (DEX) volume, and TRON has a 28%market share in the Stablecoin sector. In addition, a significant investment in Ether Leeum for layer -2 scalability using roll -ups showed unintended effects such as relatively empty blocks.
In order for ether to surpass the $ 3,500 resistance level, investors need a greater clarity of the effect of the upgrade of the upgraded PECTRA in the first quarter of 2025. The proposed changes introduce an integrated framework for improved interoperability, safe wallet conversion and simplified storage management. Ether investors believe that despite the good intentions, the speed of development is not enough to create an appropriate fee from the layer -2 ecosystem.
As a result, the upgrade will not have a significant positive impact on Ether Leeum’s default staying yield or basic layer scalability. As long as the competitive chain continues to extract more value from the user, the price of ETH is under pressure.
Ether Leeum Layer -2 AGGREGATE TVL, USD. Source: L2Beat
Another concern for Ether Bulls is the TVL (Total Value Locked) of the Ethereum Layer-2 solution. On December 8, 2024, it has decreased 25% since reaching a record of $ 65.3 billion. Despite the increase in activity, Ethereum’s competitive ecosystem is being strengthened in all directions, as well as BNB chains and solana. For example, Hyper Liquidchain has attracted $ 1.2 billion in deposits for permanent future exchange.
relevant: Trump expands encryption footprints and provides Memecoin utility for product purchases.
Similarly, competition for users and deposits came from networks such as SUI, Aptos and Ton. These can not be a direct threat, but they are well -funded and targeted for niche markets such as Web3 Gaming, social networks, digital collections and artificial intelligence infrastructure. Ultimately, according to the data, we can see that Ether Leeum’s high security is not a major cause of adoption.
Ether’s success depends on the inflow of Spot ether ETF, which has not been more than $ 150 million since January 16. This was disappointing because of the lack of staying ability. Therefore, the change and final approval of the Spot ether ETF options for CME and CBOE can support ether prices.
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.