Ether (Eth) The price rises above $ 1,700 after 16 days of sale of pressure caused by macroeconomic uncertainty and a sharp decline in onchain activity. Despite the rebound, Ether’s underperform is the wider Altcoin market of 23% year-to-date.
Some entrepreneurs say ETH is set for a “generational” bull operated by offering a “real” decentralized and unauthorized financial system, but is this really the case?
Ether is one of the few major cryptocurrencies that have not reached a new all-time high in 2025, unlike competitors like Solana (Sol), Tron (Trx), and bnb (Bnb).
Some critics have already argued Move away from proof-of-work Mining has removed a competitive advantage that had previously had Ethereum in its rivals.
The Ethereum fee drop signals eth price of weakness
Eventually, Ether could miss its competitors, even in a short time, and influencers who call for a “generational bottom” will celebrate their predictions, despite the lack of strong foundations to support long -term price growth. However, it is considered 95% Falling on Ethereum fees Since January, the chances of an immediate ETH surge seem low.
Low demand for data processing in the Ethereum network causes ETH to become inflationary, as the built-in combustion mechanism is not sufficient to balance the new coins issued to cover staking rewards.
In spite of being a clear leader Total amount that is locked .
As a result, although Ethereum’s grounds improves, the ethtopper’s optimization decreases, while competitors – especially Solana (Sol) and XRP (XRP) Investors-are hoping about approval of their funds being swapped by the fund (ETF) in the US. Currently, ETF spots in the US are only available for Bitcoin (Btc) and ether (Eth), So additional offerings are likely to reduce institutional potential demand for altcoins.
Adding to the concerns, the located area listed in the US found $ 10 million in net outflows between April 21 and April 23, while similar BTC instruments have experienced record-breaking outflows.
History shows eth price rallies that rarely last
History evidence does not favor a long -term caution compared to competitors, lowering the odds of a sustainable eth rally.
Related: The Bitcoiner Planb Slams Eth: ‘Central and Premined’ Shitcoin
For example, the Ether market sharing in the Altcoin capital reached a low point in June 2022 around 26.5% when the ETH price dropped below $ 1,100. After a quick rally at $ 2,000 in August 2022, the momentum faded, and the ETH price fell below $ 1,200 less than three months later. This sudden correction is likely to leave many investors fail, as they have to wait eight months for ETH to recover $ 2,000 in April 2023.
A similar pattern occurred in April 2021, when the Ether market sharing was lowered by 26.8%. After that, the ETH price rose from $ 2,100 to $ 4,200 to May 2021, only to fall below $ 2,000 next month. Again, entrepreneurs who buy near the cycle top will have to wait six months to recover their investment. This history has taught ether entrepreneurs who quickly get a profit, reducing the opportunity to reach a new high time.
It is difficult to determine what has been triggering the previous Ether Bull running, especially since the narrative has moved from utility tokens to NFT markets, artificial intelligence, memecoins, and, more recently, RWA tokenization. While some influencers believe in the powerful momentum of eth, others warn there may Another 15% falling Compared to Bitcoin’s performance.
Ultimately, historical evidence does not support a long -term ETH price rally, even though it lowers the relative -child in the wider capitalization of the Altcoin market.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
