1. Ethereum has fallen behind Bitcoin in recent months, despite the broader growth of the cryptocurrency market.
2. The decline of Ethereum might be attributed to substantial liquidations within futures contracts and its elevated transaction fees.
3. Ethereum's Layer 2 scaling solutions are gaining traction due to their ability to provide more cost-effective transaction fees.
4. Despite the drop in price, Ethereum's Total Value Locked (TVL) is on the rise, indicating robust DeFi (Decentralized Finance) activity.
5. The future trajectory of Ethereum's price remains uncertain, prompting investors to monitor the crucial support level at $2,150.
Despite the broader expansion of the crypto market and Bitcoin's surge to $45,000, Ethereum's growth has been notably sluggish, causing distress among investors. While Bitcoin soared by over 55% this quarter, Ethereum experienced a mere 34% rise, highlighting a significant disparity in their performance, sourced from Coinglass data.
Recent data from TradingView indicated Ethereum's decline from $2,400 to approximately $2,200, paralleling Bitcoin's downturn around the $44,700 mark. Analysts linked this drop to substantial liquidations in futures contracts across various exchanges, totaling approximately $400 million in the crypto market.
Ethereum's decline seems entrenched, supported by multiple technical indicators. Despite the emergence and rise of Ethereum Layer-2 scaling solutions like Avalanche, Ethereum struggles with persistently high transaction fees, averaging around $10.8 per transaction according to The Block's data.
However, Ethereum's Total Value Locked (TVL) in decentralized finance (DeFi), tracked by DefiLlama, remains promising. Despite price decreases, Ethereum's DeFi TVL has surged to about $28.2 billion, reflecting Ethereum's dominance in the DeFi TVL market share.
Presently trading at $2,210 after a rejection from the $2,400 zone, Ethereum's price hovers above the crucial support level of $2,150. While indicators suggest bearishness, Ethereum's stability above $2,150 may forestall further declines, yet uncertainty looms regarding a swift recovery.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
