Ethereum prices have collapsed this year as they received a $244 billion wipeout this year. Market capitalization crashed from $482 billion last November to $238 billion today. The ETH is below $2,000, suggesting that technicians have more drawbacks to implement. So why did ETH prices plummet and what next?
Ethereum is no longer the most profitable player in crypto
Third-party data from Tokenterminal shows that Ethereum is no longer the most profitable player in the crypto industry, but the long-held crown. The data shows that Ethereum has made just $215 million this year.
This is a lot of money, but it’s overtaken by other networks. Tether has already made $1.04 billion, but Tron has surpassed the $700 mark. Ethereum was passed by other major players in the crypto industry, including Circle, Jito, Solana, and Uniswap.
This performance is because many users began to avoid the Ethereum network in most activities. For example, Tron has become the largest chain of Tron transactions. This is because the network costs over $70 billion every day.
Users interested in Ethereum security have primarily chosen to use layer 2 networks such as Base, Arbitrum, and Optimism. The Ethereum Protocol remains a leader in the Decentralized Exchange (DEX) sector, while the Layer 2 network is gaining market share.
Spot ETH ETF is a bleeding asset
Ethereum Price crashed as ETH ETFs continued to cut assets. Data from SOSOValue shows that these funds have cut assets for the past four consecutive weeks. They have lost more than $703 million in the last four weeks, making their longest winning streak this year.
The Spot Ethereum ETF has a cumulative inflow of just $2.4 billion compared to Bitcoin’s $45 billion. They hold about $6.97 billion in assets, much lower than the grayscale Ethereum Trust (GBTC) had at its peak.
The Ethereum ETF became unpopular as the Securities and Exchange Commission (SEC) refused to staking these funds. Staking is a situation in which users delegate coins to secure a blockchain. After that, you will be compensated monthly.
Therefore, holders prefer to retain Ethereum in lieu of these funds. According to Stakingrewards, Ethereum’s reward rate is 3.17%, lower than other popular chains such as Solana, BNB Chain, Tron and Avalanche. Still, users prefer not only to retain these ETFs, but also to generate this yield.
Ethereum prices plummeted as investors remained pessimistic about the network. Just this week, analysts at Standard Chartered reduced Ethereum’s price target from $10,000 to $6,000.
Ethereum price technology analysis
ETH Price Chart | Source: TradingView
The weekly chart shows ETH prices have plummeted over the past few weeks. It formed a triple top pattern with a top surface of $4,050 and a neckline of $2,120. This is one of the most bearish patterns on the market. Now I’ve moved under that neckline.
Ethereum prices are about to form a mini death cross as the spread between the 50-week and 100-week moving averages cross each other.
ETH prices are also hovering at the Fibonacci retracement level of 61.8%. It also moved under the one-sided cloud indicator. So you can see that the path with minimal resistance in the coin is bearish, and the next point is $1,250. This is the ultimate support for the Murrey Math Lines tool. This price is about 35% below the current level.
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