Ethereum prices are pleased to see March approaching its end after posting one of the worst first quarter performances ever. According to Coinglass data, ETH prices have fallen nearly 50% over the past three months.
Much of the ETH struggle can be locked into uncertain climates in the general market, but even at the thickness of the bull run, it is difficult to ignore overwhelming performance. These struggles suggest the existence of a deeper problem with the second most valuable cryptoecosystem.
The reason behind the “low expectations” in ETH prices
American media giant Bloomberg is the latest to consider the struggles of the Ethereum ecosystem over the past year. In a report on March 29th, Bloomberg assessed the performance of the ETH ecosystem, primarily comparing it to the best cryptocurrency Bitcoin.
The Ethereum blockchain was launched almost a decade ago in July 2015 and attracted attention as a rival to Bitcoin, the top spot in the cryptocurrency industry. Bloomberg said in its report that the ecosystem appears to be struggling to make this early promise come to fruition as it enters a new decade.
The global crypto landscape appears to be improving, especially following Donald Trump’s election as US president.
Trump has been speaking up about his procrypted attitude. Thanks to what Bloomberg called “Trump’s embrace,” the crypto project appears to be set for a transformed industry with clearer and more stringent regulations.
However, American media companies don’t believe this “Trump embrace” is enough to turn Ethereum’s fate around. This appears to be fighting some functional issues. One such issue is the ongoing departure of developers from blockchain platforms.
Data from electricity capital shows that in 2024 the number of active developers working on Ethereum-related software has decreased roughly. In contrast, Solana Network has seen an influx of new developers over the past year, growing 83% year-on-year.
Bloomberg also highlighted some of the concerns about how the Ethereum Foundation (EF) operates without taking into account the price of ETH properly. For example, EF moved traffic to the Layer-2 network to make transactions cheaper on the blockchain.
Standard Chartered highlighted these upgrades, but unfortunately, it devolves around activities and fees and separates its underlying Ethereum Network, explaining its bearish expectations for ETH prices.
Ethereum prices are at a glance
At the time of writing, ETH prices are just above the $1,800 level, reflecting a slump of over 3% over the last 24 hours. Due to the deterioration of the market, Altcoin has been digging deep for a new Low for over a year.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
ISTOCK featured images, TradingView chart
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