It will take more than Ethereum’s upcoming Pectra upgrade to turn ETH price around. Cointelegraph explains why.
Ether (ETH ) price fell below $3,500 on Jan. 7 and has since struggled to trade above that level. The altcoin has declined by 8% over the past 30 days, while the broader cryptocurrency market capitalization increased by 6%. This underperformance is concerning for Ether investors, especially with the launch of the spot Ethereum exchange-traded fund (ETF) in July 2024.
Ether/USD vs. total crypto capitalization. Source: TradingView / Cointelegraph
Traders’ disappointment comes after a period of average Ethereum transaction fees exceeding $2, steady growth in the ETH supply, significant criticism regarding the lack of support from the Ethereum Foundation , and memecoin trading shifting to competitor blockchains, particularly Solana.
Read more,# Ethereum’s Struggles: More Than Wishing on a Pectra
## Key Points
– **Price Plunge**: Ether (ETH) has taken a nosedive below $3,500 since January 7 and just doesn’t seem to want to rise up.
– **Performance Slump**: Over the last 30 days, ETH dropped by 8%, while the entire cryptocurrency market happily gained 6%. Talk about being the party pooper!
– **ETF Excitement**: Despite the gloom, there’s some sparkle on the horizon with a spot Ethereum ETF expected to launch in July 2024. But will it be enough to save the day?
– **Transaction Fees**: Average transaction fees have been chilling at above $2, which is about as enjoyable as stepping on a Lego in the dark.
– **Supply Issues**: The ETH supply is creeping up, which is less exciting than a slow roll at the DMV.
– **Competition Trouble**: Traders are grumpy over criticism concerning the Ethereum Foundation’s lack of support and have started partying on other blockchains like Solana.
## Hot Take
Looks like Ethereum is having a bit of a mid-life crisis—the kind where you buy a flashy car but still drive the rusty old one. With transaction fees higher than a cat stuck on a roof, some investors might be looking elsewhere for their crypto kick. But hey, who doesn’t love a good comeback story? Let’s see if Pectra can lift ETH off the ground, or if it’ll just be a case of “better luck next time.” #EthereumDrama #CryptoCrisis #PectraHope
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