The adoption of an ETF for a token is an obvious trigger for growth, so why is Ether not growing, but rather entrenched in the 2300 region?
đ Price collapse
After the adoption of ETH-ETF, the price reached $3500. But after the start of ETH-ETF trading (if I am not mistaken, on July 23), the price of ETH fell by more than 25%.
đ General market decline and other factors
Let's highlight several key factors, in addition to the general market trend:
đą Revenue reduction: After the Dencun upgrade, the revenue of validators and L2 solution operators decreased due to lower fees.
đą ETH Inflation: ETH inflation is increasing despite the mechanism of burning tokens with each transaction.
đą Purchase price: Most ETH holders bought the token at prices up to $2300. To grow, you need to shake out the extra passengers, so from 3500 to 2300, the unloading was easy, there were no strong holders there.
đą ETH-ETF interest waning: Investors are temporarily moving away from ETH-ETF in favor of more "reliable" assets.
đą Growing demand for alternatives: Interest in cryptocurrencies other than ETH is increasing; Ethereum has not been in the TOP-10 in terms of open interest since July.
đ Growth is inevitable
Even with the recent price drop following the introduction of the ETH ETF, Ethereum continues to hold a strong position as the second most important cryptocurrency in the market. Despite various countervailing factors, it remains an important asset for many investors. An increase in the value of Ether is inevitable.
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