Published on juni 12, 2024, 12:36 am
Image source: Fox News
```json { "TLDR": "Ethereum's price faced a turbulent week, dropping by 10% after initial surge post ETF approval. Bitcoin and overall crypto market also decreased, indicating a possible further decline for ETH due to various market and technical indicators. Factors contributing to Ethereum's underperformance include influences from Bitcoin, decrease in network activity, and competition from Solana. Diminishing on-chain activity suggests decreasing demand for Ether, impacting its value. Investors should be cautious as breaking key support levels could lead to more downtrends." } ```
Ethereum’s price has faced a turbulent week, indicating a potential further decline according to data. Following a surge to $3,972 post the spot Ethereum exchange-traded funds (ETFs) approval, Ether (ETH) has lagged behind in the past week by 10%, compared to Bitcoin and the wider cryptocurrency market. This performance has raised concerns among traders regarding whether the altcoin’s downward spiral is nearing its end.
In comparison, Bitcoin’s (BTC) value decreased by 6% during this period while the overall cryptocurrency market capitalization dropped by 5.3%. Various market and technical indicators are pointing towards a probable deeper correction for ETH before any recovery attempts can be made.
Over the last seven days, Ether has witnessed a 10% decrease, notably underperforming when compared to Bitcoin and other prominent layer 1 tokens. BTC suffered a 5.5% drop over the same period as the ETH/BTC ratio plummeted from 0.055 on June 3 to 0.0513 on June 11 – its lowest since May 20.
Several factors have contributed to Ethereum’s underperformance recently, including influences linked to Bitcoin in 2024. Successful U.S. spot Bitcoin ETFs attracted around $2 billion in capital inflows last week. Moreover, impending CPI readings and decisions from the FOMC concerning rate adjustments have precipitated significant market corrections impacting crypto prices across the board, including Ether’s.
Furthermore, there has been a decline in Ethereum’s network activity over recent months. Data indicates that daily active addresses on the Ethereum network fell from 622,963 addresses on March 20 to 458,400 on June 10 with a notable decrease even within the past two days alone.
While Ethereum still stands out as a leading network in layer one functionality; Solana has gained ground recently in terms of on-chain activity share within this sector. Statistics show that Ethereum’s NFT volume dropped by about 9% over the last week to reach 105 million.
Diminishing on-chain activity suggests diminishing demand for Ether within its ecosystem exerting downwards pressure on its value. The visual representation displays how Ethereum trails behind Solana and BNB Chain regarding total Unique Active Wallets (UAWs), with over half-million UAWs interacting with Ethereum’s protocol marking a decrease over recent days.
The article highlights key support levels crucial for Ether’s performance and suggests that breaking below these support zones could lead to further downtrends in price movement expectations based on historical data trends observed in previous instances.
Despite recent fluctuations where prices reached highs only to retract later due to profit booking and broader market corrections, Ether currently maintains stability around $3,511 after witnessing a drop of about 12%.
Investors should exercise caution while analyzing these trends as cryptocurrency investments entail inherent risks that individuals must thoroughly evaluate before deciding their positions or trading strategies without solely relying on external advice or recommendations for their financial decisions.
Original article posted by Fox News
