Ethereum, the world's second-largest cryptocurrency, continues its decline, jeopardizing its leading position in the crypto ecosystem.
Reasons for ETH Decline
One of the main factors contributing to Ethereum's price decline is the substantial outflow of funds from spot Ethereum ETFs. Over the past three weeks, these funds have lost over $513 million, reducing net inflows to $2.64 billion.
Losing Ground in the Crypto Ecosystem
Once predominant in sectors like stablecoins and decentralized finance (DeFi), Ethereum is now losing market share to competitors. TRON (TRX) has overtaken Ethereum in terms of Tether (USDT) transactions, while layer-2 solutions like Base and Arbitrum are eroding its DeFi dominance.
Issues with ETH/BTC Pair
Ethereum's performance against Bitcoin has worsened: the ETH/BTC trading pair has plummeted to 0.022, the lowest level since May 2020, signaling a growing investor preference for Bitcoin, whose dominance has surged to 61.2%.
From a technical standpoint, Ethereum faces significant challenges, including the potential for further price drops to $1000. Investors continue to monitor key resistance and support levels for insights into possible future trends.
