With the election approaching, can ETH break through the 3,000 mark? The critical week has arrived!

With only one week left before the election, the liquidity of the crypto market may increase, which may be an opportunity for ETH to get rid of the recent downturn. The current greed index of ETH is high, which may be a good buying opportunity.

However, uncertainty remains. In the recent market performance, Solana's strong performance has taken advantage of Bitcoin's highs, and Bitcoin's pullback has not affected its rise, which may make ETH's rebound more challenging.

Ethereum's core data is under pressure

ETH's recent performance is challenging. Although the active addresses of the main network and the second-layer network have increased by 40%, the price has continued to fall, falling below $2,700, a drop of nearly 7%. In addition, Ethereum's network fees have dropped to a low point, which not only makes it lag behind rivals such as Solana in the competition, but also raises market concerns about network security.

The decline in the number of validators and the number of staking wallets have hit a new low this year, which have put pressure on ETH. The Proof of Stake (PoS) mechanism requires 32 ETH to be staked. The reduction in validators may lead to a decrease in network security, and may also cause users to switch to Solana, which has lower transaction fees, further losing user base.

Technical analysis: Can it break through $3,000?

Against the backdrop of increased market liquidity, ETH is expected to rebound. From a technical perspective, Ethereum recently broke through the 11-week cumulative trend line, and there may be upward momentum in the short term. ETH's major holders are also increasing their holdings, indicating that they still have confidence in the future, and network transaction volume is also growing, and the fundamentals are good.

Short-term trend outlook

Against the backdrop of the end of the election, market liquidity is expected to drive ETH up. However, whether it can break through $3,000 is still affected by market sentiment and external factors. In the near future, we need to pay close attention to market trends and act when the time is right.

The bull market has arrived. If you haven't laid out yet, find me to keep up