Originally published on: November 04, 2024
Ethereum’s price has been struggling to stay above the $2,500 mark despite multiple attempts since the crypto sell-off in early August. With Ether heading for its sixth consecutive day in the red, it’s clear that this crucial price level is posing a formidable challenge.
Market participants had high hopes for spot Ethereum exchange-traded funds (ETFs) to drive ETH’s price higher when they launched on July 23. However, these investment products have seen significant outflows, totaling over $478.5 million since their debut in the United States.
Institutional demand, which was expected to boost Ether’s price, has not materialized as anticipated. Flows into Ethereum investment funds remain lackluster compared to the enthusiasm seen for Bitcoin and Solana, with only $9.5 million in inflows over the past week.
This lack of investor interest is reflected in Ethereum’s declining network activity compared to its competitors. High gas fees and scalability issues have prompted users and developers to explore alternative layer-1 blockchains like BNB Chain, Solana, and Tron.
Ethereum’s market dominance has also been on the decline, reaching a 42-month low of 13% on Nov. 4. This trend, coupled with bearish signals in ETH’s chart, suggests that the cryptocurrency may face further downside pressure.
Popular crypto analysts like Max Price and The Great Martis are cautioning investors about the potential for a downward breakout in Ethereum’s price, with targets below $1,000.
While the outlook for Ethereum may seem bleak, it’s important to note that every investment comes with risk. Investors should conduct their own research and due diligence before making any decisions in the volatile crypto market.
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