**Ether Faces Seven-Month Slump Amidst Blockchain Competition**

Ether (ETH), the world's second-largest cryptocurrency, has been in a downtrend for seven months, dropping over 36% from its March 2024 high of $4,111 to $2,600. This decline is partly due to Ethereum's struggle in the layer-1 (L1) blockchain wars, with competitors like Solana, Avalanche, and Fantom gaining ground.

Crypto analyst Ignas suggests that Ethereum's ecosystem fragmentation, caused by the rise of layer-2 (L2) networks, is diverting investment to other L1 tokens. Solana, for instance, has seen a 552% rise over the past year, outpacing Ether's 57% increase.

Technical patterns indicate Ether might correct to around $2,400 soon. Meanwhile, Bitcoin (BTC) is also facing a prolonged downtrend, adding pressure to the broader crypto market.