[The main reason why the price of Ethereum is difficult to reach new highs]
The lack of an upward trend in Ethereum (ETH) price is related to the sideways movement of Bitcoin (BTC). Since the Ethereum Foundation sold $94 million of ETH on August 23, the price of ETH has fallen 14% and is currently around $2,500.
Ethereum price is highly correlated with Bitcoin, with a 30-day correlation coefficient of about 0.85, meaning that BTC movements will affect ETH. Since Bitcoin is affected by the overall economic policy of the United States, investors need to pay attention to the movements of the Federal Reserve. Since the launch of the spot Bitcoin ETF, net inflows have continued to be positive, while flows to the ETH ETF have declined, indicating a lack of interest.
Bitcoin is regarded as digital gold, and its argument is simple and easily accepted by older investors; in contrast, Ethereum is described as a world computer, which makes it difficult to attract investors who prefer ETFs. Solana is regarded as the "Ethereum killer". Due to its easy access, low transaction costs and high transaction finality, it has attracted many retail investors. Especially the rise of meme coins has caused investors to switch from Ethereum to Solana.
Combining these factors, there is currently no sign that Ethereum price will retest the all-time high of $4,093.
