**Ethereum Faces Competitive Pressure Amid Market Dynamics**

Ethereum has experienced a decline in activity, losing ground to blockchains that offer greater accessibility, advanced technology, and rapid updates. This shift is also influenced by prevailing crypto market narratives.

Despite a positive momentum sentiment, the figures are underwhelming. Open Interest reached $9.2 billion with an inflow of $2.12 billion in August 2024, a 30% increase, which is significantly lower than the $6 billion (50%) increase observed between April and May.

The Coinbase Premium Gap indicates a slowdown in selling pressure from American investors. However, the entry into a directional pressure triangle suggests a lack of substantial liquid capital inflows, which are crucial for a positive rally. Following the FOMC meeting, Ethereum saw a gas price increase, hinting at a potential shift of treasury yields towards DeFi.

Lending platform Aave reported fees of $43M in August, a marginal increase from March, indicating insignificant growth.

Ethereum must revert to its economic mean, addressing internal gaps and aligning with technological advancements to compete effectively. The current lack of significant investment and unsustainable small capital inputs highlight the need for strategic adjustments.