Why is the Ether (ETH) price falling?

The lack of sufficient inflows in spot Ethereum ETFs and the declines in the Ethereum blockchain are suppressing the ETH price.

The lack of sufficient inflows in spot Ethereum ETFs and the declines in the Ethereum blockchain are suppressing the ETH price.

Despite the spot #ETF products that started trading in the US, the fact that the #ETH price could not exceed $ 3,000 has created anxiety. The reasons behind the greater decline in the ETH price compared to the cryptocurrency market have drawn attention.

The Ethereum blockchain fell out of favor with the #memecoin craze in #Solana . Despite the lowest transaction fees of all time, the total locked asset (#TVL ) value in the Ethereum blockchain did not increase. On the other hand, the Solana and Base blockchains recorded growth.

The Ether (ETH) price lost 5.2 percent between September 3 and September 4 after being rejected from the $ 2,550 resistance. The pioneer of altcoins spent eight days below this level.

Cointelegraph said the following about ETH:

“Investors are concerned that ETH could underperform even if the broader crypto bull market continues as incentives for fixed income in the United States are expected to wane.”

The uncertainty created by the Fed and the $279 billion loss in Nvidia shares are weighing on cryptocurrencies. Risky assets are under the influence of turbulent processes in global markets.

According to DefiLlama data, Ethereum network fees fell to their lowest level in four years last week. The 88% drop in four weeks has led to criticism of Ethereum’s pricing model.

Crypto analyst Cygaar suggested that layer-2s are failing and that the failure is affecting the Ethereum blockchain.

ETH, which has been losing network fees and transaction activity, also took a hit from spot Ethereum ETFs. Spot ETH ETFs reported net outflows of $47 million on September 3. Disappointing crypto investors, ETFs have recorded a net outflow of $475 million since their launch on July 23.