Concerns are raised by Ethereum’s (ETH) persistently declining metrics in the midst of a wider market downturn. Ethereum has now dropped 5.90% in a day to $3,338.93, bringing its weekly loss to 8.65%. This is as of this writing.
Ethereum’s uncertain growth path
Top market analyst Ali Martinez discussed the present state of Ethereum by sharing data from the crypto analytics site IntoTheBlock (ITB), which demonstrates that Ethereum lacks a significant support on its downward trajectory.
Martinez pointed out that Ethereum’s failure to hold onto the $3,460 support zone represents a significant strain and unease for the coin’s bulls. Martinez says that if the decline continues, the price of Ethereum may drop as low as $2,850.
https://x.com/ali_charts/status/1775034515221602730?s=20
As can be seen from the graphic he displayed above, 4.97 million ETH, or 33% of all ETH in circulation, are in the money, or profitable, according to the data. This represents a value of $16.68 billion. Ten million Ethereum worth $33.52 billion, or 66.31% of all coins in existence, have been forced out of the currency due to the recent drop.
In order for Ethereum to surpass its equilibrium price for profitability, its price has to fluctuate between $3,252.30-$3,352.58.
Ethereum uncertainty triggers dark optimism
In addition to the market’s overall influence on Ethereum’s price, internal concerns—such as the rumoured investigation of the Ethereum Foundation by an unidentified governmental body—are lowering confidence.
The United States Securities and Exchange Commission (SEC) is purportedly trying to categorise ETH as a securities, which casts question on the future of the current Ethereum ETF product.
Despite the fact that this product’s prospects of approval have drastically decreased, industry heavyweights like Larry Fink of BlackRock are certain that the approval of an ETF would not be significantly impacted by a securities classification.
