Key Points
Ethereum’s Market Position
Ethereum has seen a decline for two weeks straight. This is due to concerns about weak demand and falling market share. Ethereum (ETH) fell to a low of $2,140 this week. It then bounced back to $2,620 as the crypto industry stabilized. However, it still remains about 37% below its highest level in December last year.
Solana as a Competitor
Data from DeFi Llama shows Ethereum’s 30-day trading volume was $95 billion. This is in comparison to Solana’s (SOL) $264 billion. Ethereum has also been overtaken in terms of fees this year. Its network has collected $172 million in fees. This makes it the sixth-most profitable cryptocurrency project after Tether, Tron, Jito, Solana, and Circle. The price of ETH has also dropped due to ongoing Ethereum Foundation controversies and token dumps.
Potential Recovery Catalysts
One potential catalyst for ETH recovery is the ongoing spot Ethereum ETF inflows. SoSoValue data shows that these funds have had cumulative net inflows in the last six consecutive days. This brings the total flows to $3.17 billion. This is a sign that Wall Street investors are buying the dip. This indicates more demand for these funds. However, spot Ethereum ETFs still have a long way to go to catch up with Bitcoin (BTC), which has accumulated over $40 billion in inflows.
Another potential catalyst for Ethereum’s price is the falling balances on exchanges. This is a sign of potential investor accumulation. ETH balances in exchanges tracked by CoinGlass have fallen to 15.36 million. This is down from 16.1 million earlier this year. They have fallen to the lowest level since December last year. The falling Ethereum balances happen when activity in the over-the-counter, or OTC, sector rises. OTC activity is common among large institutions that want to execute large transactions outside the public centralized and decentralized exchanges.
Ethereum Price Trends
The weekly chart shows that the price of ETH crashed to a low of $2,140 this week. This is its lowest level since August of last year. It has since formed a hammer pattern. This pattern has a longer lower shadow and a small body and is a popular bullish reversal sign. A similar pattern happened in August when Ethereum bottomed at $2,139. The two big drops happened in periods of large bearish volume spikes. ETH also found support at the 200-week moving average. Therefore, the coin will likely bounce back, and possibly retest the resistance at $4,080. A break above that level will point to more gains to the all-time high of $4,800, followed by $6,000.
