The post Ethereum Price Analysis: Why is ETH Under-Performing This Year? appeared on BitcoinEthereumNews.com.

TLDR: Ethereum (ETH) price is underperforming compared to the broader crypto market ETH price dropped 5.2% between Sept. 3-4, facing resistance at $2,550 Factors include declining network fees, weak spot ETF demand, and low staking rewards Macroeconomic uncertainty and potential tech stock bubble are additional concerns ETH price is attempting recovery but faces resistance around $2,400-$2,440 Ethereum, the second-largest cryptocurrency by market capitalization, has been underperforming compared to the broader crypto market in recent weeks. This article examines the factors contributing to ETH’s price struggles and its attempts at recovery. Between September 3 and 4, Ethereum’s price dropped by 5.2%, facing strong resistance at the $2,550 level. The cryptocurrency has been unable to close above this price point for eight consecutive days, raising concerns among traders about its ability to keep pace with a potential crypto market resurgence. As of the latest data, ETH is trading below $2,440 and the 100-hourly Simple Moving Average. The price is currently attempting a recovery, having moved above the $2,365 and $2,380 resistance levels. However, it faces significant hurdles near the $2,400 mark, with a bearish trend line forming resistance at this level. Factors Contributing to ETH’s Underperformance Declining Network Fees: Ethereum network fees have dropped to their lowest level in over four years, reaching $3.1 million in the week ending August 31. This 88% decline over four weeks has led to criticism of Ethereum’s compensation model and raised concerns about long-term network security. Weak Spot ETF Demand: Ethereum’s spot ETF products have seen significant outflows, with $47 million leaving on September 3 alone. Since their U.S. market debut on July 23, these instruments have recorded $475 million in outflows, indicating a lack of institutional interest. Low Staking Rewards: Ethereum’s relatively low 3.2% staking reward, when factoring in the current 0.7% annualized inflation rate,…

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Filed under: News - @ September 6, 2024 4:20 pm