One reason for the relatively large drop in Ethereum prices appears to be excessive long positions in perpetual futures.

Another possible factor contributing to Ethereum’s underperformance is actual and expected selling by a few large holders, including market maker Jump Crypto, venture capitalist Paradigm, and Golem Network, a crypto protocol with a large treasury holding of Ethereum.

The decline in the number of active validators and the rise in Ethereum’s staking reward rate also indicate a shift in the relatively sticky token supply, which could affect market sentiment.