Ethereum Faces Network Shakeup: These Key Trends Point to Market Shifts

Name	Symbol	Market	Market Cap ($)	Algorithm
Ethereum	ETHUSD	Crypto	300,572,441,450	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Ethereum

ETHUSD

Crypto

300,572,441,450

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-16.88	-0.67%	2,494.98	2,494.99	2,495.00

Price Change

Price Change %

Current Price

Bid Price

Offer

-16.88

-0.67%

2,494.98

2,494.99

2,495.00

High Price	Low Price	Open Price	Prev. Close	52 Week Range
2,522.48	2,494.64	2,514.37	2,511.86	1,777.00 - 4,093.88

High Price

Low Price

Open Price

Prev. Close

52 Week Range

2,522.48

2,494.64

2,514.37

2,511.86

1,777.00 - 4,093.88

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	08:59:03	0.00000001	2,495.30	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

08:59:03

0.00000001

2,495.30

USD

Price x Volume	Volume	Base Symbol	Related Pairs
22,386,155.69	8,921.13	ETH	ETHEUR	ETHGBP	ETHBTC

Price x Volume

Volume

Base Symbol

Related Pairs

22,386,155.69

8,921.13

Ethereum Faces Network Shakeup: These Key Trends Point to Market Shifts

30/09/2024 9:30pm

NEWSBTC

Ethereum, the second-largest cryptocurrency by market cap, has recently shown signs of a shifting market sentiment and momentum, according to an analysis by a CryptoQuant analyst named Percival. The analyst disclosed that various market conditions and technological developments have impacted Ethereum’s momentum and have led to mixed views on its future growth trajectory. Related Reading: Ethereum Price Trims Gains: Is the Rally Losing Steam? Ethereum’s Market Sees Shift Percival, highlighted that Ethereum has faced a decline in activity due to the rise of other blockchains with greater accessibility, more advanced technology, and faster update cycles. According to the analyst, “the positive Momentum sentiment is far below expectations.” So far, the open interest in Ethereum futures—a measure of capital flowing into derivative contracts—reached $9.2 billion, with a notable inflow of $2.12 billion in August 2024. This represents a 30% rise but pales compared to the $6 billion inflow observed between April and May, reflecting only half of that previous momentum. Another major observation of the analysis was the “Coinbase Premium Gap,” indicating the differential between the price of Ethereum on Coinbase and other global exchanges. A slowdown in selling pressure from US-based investors suggests a possible positive shift in market sentiment. However, the market is still waiting for a significant influx of capital to drive a strong rally for Ethereum. The analyst pointed out that any future price recovery would depend on substantial investment inflows, which have yet to materialize. Furthermore, after the Federal Open Market Committee’s (FOMC) announcements, Ethereum’s gas fees surged, hinting at a possible shift of capital from traditional treasuries into decentralized finance (DeFi). The analyst mentioned an instance: the DeFi lending platform Aave, which operates on the ETH network, has seen a moderate rise in fee collection, from $42 million in March to $43 million in August. Ethereum Network Lags Behind While Percival noted that from an economic perspective, Ethereum needs to revert to its max fee pass gas mean, aligning its growth with its intrinsic value, the analyst also suggests that Ethereum currently faces several internal gaps. Although the technology ecosystem around Ethereum is expanding, the network seems to be lagging behind the competition, according to Percival. The CryptoQuant analyst reveals that this disconnect between Ethereum’s capabilities and its technological rivals has led to a significant shortfall in investment. Moreover, the limited inflow of small capital and lack of consistent use suggest that even minor investments are not being sustained over time. Related Reading: Ethereum Taker Buy/Sell Ratio Is Rising Again — What It Means For ETH Price The analyst’s take is further validated by the fact that Ethereum’s network has faced increased competition from alternative blockchains like Solana, Binance Smart Chain, and others that boast higher transaction speeds and lower fees. This has, to some extent, diverted attention and investment from Ethereum to these newer ecosystems. Featured image created with DALL-E, Chart from TradingView

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