Key Points
The Ethereum price has taken a severe hit this year.
It’s currently hovering near its lowest point since September of the previous year.
Ethereum’s Triple-Top Pattern and Other Factors
As of last Sunday, Ethereum was trading above $2,200.
This represents a significant drop from its high point in November of the previous year, where it was over 45% higher.
A few key charts can shed light on why Ethereum’s price has plummeted.
One such chart shows a triple-top pattern formed by the Ethereum price.
This pattern, which consists of three peaks and a neckline, is a strong indicator of bearish market behavior.
Ethereum has now fallen to the neckline at $2,150.
A clear break below this level could lead to further losses, potentially dropping to $1,176.
In addition to this, spot Ethereum Exchange Traded Funds (ETFs) have seen significant outflows in recent weeks.
Despite these funds attracting a cumulative inflow of $2.82 billion, this pales in comparison to Bitcoin’s $38 billion.
Another contributing factor is the rise in Ethereum staking outflows.
Data from StakingRewards indicates that the staking market cap has fallen by 20% in the last week, reaching $74.5 billion.
This decrease is also evidenced by the drop in total value locked in Lido, a major liquid staking network in the crypto industry.
There is also evidence that more investors are selling their Ethereum coins.
This can be inferred from the increase in balances on exchanges, which have risen in recent days to 15.40 million, the highest level since February 1st.
Ethereum’s profitability in the crypto industry has also decreased.
Ethereum has made $198 million this year, which has been surpassed by other players in the crypto industry such as Uniswap (UNI), Circle, Solana (SOL), Jito (JTO), and Tron (TRX).
Other charts also provide explanations for Ethereum’s ongoing price crash.
One chart shows that Ethereum is losing market share in the Decentralized Exchange (DEX) industry, where layer-2 networks like Arbitrum and Base are struggling.
Another chart from Santiment shows that Ethereum whales, or large holders of the coin, have been selling off their holdings.
