Ethereum

bullish

Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow" target="null" text="null" title="null">ETH</a>) has made several recoveries above $2,500 since the early August crypto sell-off but has been unable to sustain above this important price level.
<h2 id="eth-price-eyes-sixth-straight-red-daily-candle">ETH price eyes sixth straight red daily candle</h2>
Market participants anticipated spot Ethereum exchange-traded funds (ETFs) flows to boost ETH’s price once they began trading on July 23.&nbsp;
At the time of writing, Ether is headed for its sixth straight day in the red, with $2,500 posing stiff resistance. Meanwhile, several technical and onchain metrics are pointing to a further correction.
Let’s take a closer look at what’s hurting ETH's price and why the $2,500 level is crucial.
<figure><img alt="3 signs Ethereum price is in trouble below $2,500" src="https://s3.cointelegraph.com/uploads/2024-11/0192f723-8dc3-70f4-b42a-f7466af2c63d" title="">
 <figcaption style="text-align: center;">
 ETH/USD daily chart. Source: <a data-ct-non-breakable="null" href="https://www.tradingview.com/x/G6OcC9Ek/" rel="noopener noreferrer nofollow" target="null" text="null" title="https://www.tradingview.com/x/G6OcC9Ek/">TradingView</a>
 </figcaption>
</figure>
<h2 id="strong-weak-spot-ethereum-etf-flows-strong">Weak spot Ethereum ETF flows</h2>
Ether has also been struggling with <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-etfs-coming-what-you-need-know" rel="noopener noreferrer nofollow" target="null" text="null" title="null">spot Ethereum ETFs</a>, which saw more than $10.9 million in net outflows on Nov. 1. In fact, these investment products have recorded $478.5 million in outflows since their <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/spot-ethereum-etfs-begin-trading-sec-approval" rel="noopener noreferrer nofollow" target="null" text="null" title="null">market debut</a> in the United States on July 23.&nbsp;
The lack of investor interest is concerning, especially since institutional demand was considered a key part of Ether’s appeal, as Ether’s gains occurred on May 21, two days before the ETFs were <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/eth-etf" rel="noopener noreferrer nofollow" target="null" text="null" title="null">approved</a> by the Securities and Exchange Commission.
<figure><img alt="3 signs Ethereum price is in trouble below $2,500" src="https://s3.cointelegraph.com/uploads/2024-11/0192f729-3a66-7acb-8144-2771d5375d90" title="">
 <figcaption style="text-align: center;">
 Spot Ether ETF flows table. Source: Farside Investors
 </figcaption>
</figure>
This is also reflected across all other Ether products, with the latest Digital Asset Fund Flows Weekly Report by CoinShares <a data-ct-non-breakable="null" href="https://blog.coinshares.com/volume-207-digital-asset-fund-flows-weekly-report-72042acb489f?source=collection_category---4------0-----------------------" rel="noopener noreferrer nofollow" target="null" text="null" title="null">pointing out</a> that flows into Ethereum investment funds remain in contrast to the bullishness seen in Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow" target="null" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) and Solana (<a data-ct-non-breakable="null" href="https://cointelegraph.com/solana-price-index" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/solana-price-index">SOL</a>), with only $9.5 million inflows during the week ending Nov. 1.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-is-still-like-amazon-in-the-1990s-21-shares" rel="noopener noreferrer nofollow" target="null" text="null" title="https://cointelegraph.com/news/ethereum-is-still-like-amazon-in-the-1990s-21-shares">Ethereum is like ‘Amazon in the 1990s’ — 21Shares</a>
In comparison, institutional investors poured more than $2.1 billion into Bitcoin investment products.&nbsp;
Part of Ether’s failure to sustain a recovery above the $2,500 resistance comes from unmet expectations that ETF flows would mirror those into spot Bitcoin ETFs, resulting in BTC price rallying to&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-new-73-6-k-all-time-high-etfs-eat" rel="noopener noreferrer nofollow" target="null" text="null" title="null">new all-time highs</a>&nbsp;in March.&nbsp;
<h2 id="strong-increasing-l1-competition-strong">Increasing L1 competition</h2>
Ethereum’s high gas fees offer an opportunity for competing <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/whats-the-difference-between-blockchain-layers-l0-and-l1" rel="noopener noreferrer nofollow" target="null" text="null" title="null">layer-1 blockchains</a> focusing on high scalability to eat into its market share in the space. While a fraction of the activity has moved to Ethereum layer-2 solutions, some users and developers are opting for other top layer-1 alternatives such as the <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/a-beginners-guide-to-the-bnb-chain-the-evolution-of-the-binance-smart-chain" rel="noopener noreferrer nofollow" target="null" text="null" title="null">BNB Chain</a> (<a data-ct-non-breakable="null" href="https://cointelegraph.com/binance-coin-price-index" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/binance-coin-price-index">BNB</a>), Solana and <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-is-tron-trx-and-how-does-it-work-a-beginners-guide#:~:text=Tron%20is%20a%20blockchain%20network,DApps%20from%20Ethereum%20to%20Tron." rel="noopener noreferrer nofollow" target="null" text="null" title="null">Tron</a> (TRX).
As a result, Ethereum’s network activity growth has fallen behind its rivals’ as more users opt for lower-fee ecosystems.&nbsp;
<figure><img alt="3 signs Ethereum price is in trouble below $2,500" src="https://s3.cointelegraph.com/uploads/2024-11/0192f72a-0394-78a6-a527-b17cbbecdcd7" title="">
 <figcaption style="text-align: center;">
 Top blockchains ranked by 24-hour DApps volume, USD. Source: DappRadar
 </figcaption>
</figure>
For example, Ethereum’s unique active wallets (UAW) engaging with decentralized applications (DApps) on the platform declined by 16% over the last 30 days compared to a 19% increase on&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/what-is-solana-and-how-does-it-work" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Solana</a> and a 75% increase on&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/avalanche-avax-ecosystem" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Avalanche</a>.
Similarly, the total volume transacted on the Ethereum network dropped by 9.6% during the same period, while the volume on the BNB Chain, Solana and Avalanche increased by 1.5%, 10% and 60%, respectively.
<h2 id="strong-eth-dominance-hits-3-year-lows-strong">ETH dominance hits 3-year lows</h2>
Ethereum’s lackluster network fundamentals against its rivals are also reflected in decreasing market share.
Ether’s market dominance continued its downward trajectory in 2024, reaching a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ethereum-42-month-lows-versus-bitcoin-is-the-bottom-close" rel="noopener noreferrer nofollow" target="_self" text="null" title="https://cointelegraph.com/news/ethereum-42-month-lows-versus-bitcoin-is-the-bottom-close">42-month low</a> of 13% on Nov. 4. This indicates that the largest altcoin by market capitalization is losing market share to Bitcoin and other altcoins.
<figure><img alt="Markets, Market Update, Market Analysis, Altcoin Watch, Ethereum Price, Ethereum ETF" src="https://s3.cointelegraph.com/uploads/2024-11/0192f790-3424-7b08-8b7a-982b7f1a5acb" title="">
 <figcaption style="text-align: center;">
 Ether market dominance chart. Source: <a data-ct-non-breakable="null" href="https://www.tradingview.com/x/rLI6jpNw/" rel="noopener noreferrer nofollow" target="null" text="null" title="https://www.tradingview.com/x/rLI6jpNw/">TradingView</a>
 </figcaption>
</figure>
Since Ethereum is the only altcoin with its own spot ETH, Ether’s market dominance downtrend, and prices, will depend on ETF inflows,&nbsp;<a data-ct-non-breakable="null" href="https://x.com/Max1milianPrice/status/1852716274188480543" rel="noopener noreferrer nofollow" target="null" text="null" title="null">argues</a>&nbsp;popular crypto analyst Max Price, who said:
<blockquote>
 “follow the money id only think about moving into eth if etf inflows start to pick up.”
</blockquote>
Meanwhile, fellow analyst The Great Martis is sounding the alarm that ETH’s chart is showing “bearish tendencies” with a possible downward breakout to areas below $1,000.
<figure><img alt="Markets, Market Update, Market Analysis, Altcoin Watch, Ethereum Price, Ethereum ETF" src="https://s3.cointelegraph.com/uploads/2024-11/0192f790-cb75-7bba-986d-d50073105a92" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/great_martis/status/1852837072316621125" rel="noopener noreferrer nofollow" target="null" text="null" title="https://x.com/great_martis/status/1852837072316621125">The Great Martis</a>
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

3 signs Ethereum price is in trouble below $2,500

Table of Contents

Cointelegraph

Other articles published on Nov 4, 2024

Sui Price Prediction: Will SUI Reach New All-Time Highs Next Week?

MAGA, Trump Tokens Continue to Pump Ahead of US Election and DUM Could Explode Next

Pakistan proposes new crypto framework to central bank rules

Blockchain-Ads New Partner Program Welcomes LeanMarketing-Crypto as a Certified Agency

Will Altcoins Face a 40% Drop? Lessons from Bitcoin’s 2020 Election Performance

Kraken unveils broker offering in Australia for institutions

Join our free newsletter for daily crypto updates!