The article discusses the reasons behind Ethereum's continued bear market and underperformance compared to other cryptocurrencies. The first reason is a lack of demand for Ethereum ETFs from institutional investors, with outflows of $504 million recorded. In contrast, Bitcoin ETFs have seen cumulative inflows of almost $22 billion.
The second reason is an increase in the amount of Ethereum held on exchanges, suggesting that many holders are starting to sell their coins. Prominent sellers include Vitalik Buterin and the Ethereum Foundation.
Ethereum has also lost market share in various sectors, such as stablecoins, where Tron has become the biggest mover of Tether, and in the meme coin industry, where Solana has become the preferred chain. Additionally, Ethereum is no longer the favorite platform among developers due to slow speeds and high transaction costs.
From a technical analysis perspective, the article notes that Ethereum's price chart shows a double-top pattern, a death cross pattern, and a bearish pennant pattern, suggesting a potential breakdown and a drop to the next key support level at $2,000.
- Content Editor ( invezz.com )
- 2024-10-28
Ethereum price prediction: risky pattern points to a breakdown