Ethereum prices crashed this year as its on-chain metrics declined and ETH Exchange-Traded Funds (ETF) spills rose. ETH has crashed for the last two weeks in a row, hovering at its lowest level since December 2023. Let’s explore why the value of Ethereum coins continues to decline in the short term.
Ethereum Price’s technology is weak
The weekly chart shows that the coin has been on a strong downward trend over the past few months. For around $4,050, we formed a triple top chart pattern. This pattern consists of three twin peaks and a neckline, in this case it costs $2,153. It is one of the most bearish patterns on the market.
Ethereum Price moved to the neckline for $2,153. In other words, there may be a strong bearish breakdown soon. The depth of this pattern is approximately 46%. That is, a similar crash from the neckline is $1,142, about 45% below the current level.
Ethereum prices destroyed 50% of Fibonacci’s retracement level for $2,475. It is also below the 50- and 100-week index moving averages (EMA).
Additionally, the relative strength index (RSI) and MACD indicators are heading downwards. So the coin is likely to continue to fall in the coming months, with the initial target being $1,500. This bullish view is disabled when the coin rises its 38.2% retracement points up $3,000.
ETH Price Chart | Source: TradingView
ETH ETF leak
Furthermore, Ethereum prices crashed due to declining demand among Wall Street investors. Recent data shows that all ETFs have accumulated over $2.7 billion in assets since approval. Meanwhile, Spot Bitcoin ETF has accumulated over $40 billion in assets.
Ethereum ETFs struggle in some due to the opportunity cost of holding coins and ETFs. Holding Ethereum itself is more profitable than ETFs due to its staking capabilities. Data shows that Ethereum’s market capitalization is over $72.8 billion, much higher than the ETF’s total assets, at $7.7 billion.
Data from Sosovalueshows, which found Ethereum ETF, has cut assets in the past few weeks. After losing $35 million and 63 million over the past two days, it dumped more than $23 million in assets on Friday. Overall, the Spot Ethereum ETF has dropped more than $455 million in the last two weeks.
Ethereum Network fees tanked
Furthermore, Ethereum has not made as much money as it used to be in the past. This year, it has made $206 million, making it the third most profitable layer 1 network after Tron and Solana, earning over $593 million and $346 million, respectively.
Ethereum is the most profitable blockchain network in the crypto industry and is now overtaken. One of the main reasons for this is that Ethereum was overtaken by Tron in terms of Stablecoin trading. Tron regularly handles $60 billion worth of Stablecoins every day.
Ethereum Network has lost market share to other chains such as Solana, Arbitrum and Base. Data shows that the Ethereum network has processed more than $81 billion in the last 30 days, lower than Solana’s $92 billion. Ethereum Layer-2 networks such as Arbitrum and Base have processed $24 billion and $30 billion.
So, all of these factors, coupled with weak on-chain metrics, mean that tokens will struggle to gain market share in the coming months.
Read more: Ethereum Price Prediction March: Is an additional 50% crash possible?
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