Ethereum continues its attempt to reclaim the $1,900 price level amidst market challenges.
DeFi Challenges and Ethereum Price Drop
Since the start of the year, the network’s total value locked decreased from $63 billion to $44 billion, indicating reduced liquidity and investor participation. This has also been reflected in decentralized exchange trading volumes, which fell from $92 billion in December to $82 billion in February.
Impact of Competition on Ethereum
Emerging blockchains like Hyperliquid and Solana continue to gain momentum in perpetual futures trading. This has led to a drop in Ethereum futures trading volumes from $31 billion in December to $18 billion in February.
Technical Analysis and Future of Ethereum
Analysis shows that Ethereum is trading below its 50-day moving average, indicating a downward trend. The low trading volume points to poor market participation. An important development could be the inclusion of staking in Ethereum ETFs, which might increase institutional interest.
Ethereum continues to struggle against market pressures, maintaining support around $1,875, but its future remains uncertain amid strong competition and weak DeFi metrics.
