Is Solana to Blame for Ethereum’s Massive Price Drop?

• Ethereum’s price fell by 23.4% to $2,171, more steeply than Bitcoin’s 18% drop during the same period.
• Major institutional sell-offs, including Grayscale’s sale of 600,000 ETH, contributed to Ethereum’s sharp decline in value.

During the recent global market downturn, Ethereum recorded a more pronounced fall than Bitcoin. On a day marked by widespread sell-offs, Ethereum’s price decreased by 23.4%, dropping to $2,171, while Bitcoin decreased by 18%, momentarily reaching a low of $49,000.

Solana’s lower transaction fees and scalable infrastructure are attracting developers and users, potentially diverting resources from Ethereum.

Looking forward, the trajectory for Ethereum’s price remains uncertain. Analysts suggest that continued selling pressure could push Ethereum’s price down towards $2,010, potentially testing further support near $1,795. Conversely, a resurgence in buying activity could lift the price towards resistance levels between $2,500 and $2,700.

With a market cap of $302.785 billion and a circulating supply of 120.26 million ETH, the trading volume in the last 24 hours was $30.65 billion, indicating strong market interest and liquidity. 

Ethereum is experiencing a bullish trend, with potential resistance at $2,600 and further growth possible towards $2,700.