Ether’s Chance Of Turning Bullish Before 2025 Ends Depends On 4...
Ether’s struggle to reclaim $4,000 is the result of weakening onchain activity, a decline in fees and competition from Solana, BNB Chain and upcoming altcoin ETFs.
Lower network fees and slowing blockchain usage continue to weigh on ETH’s performance despite Ethereum’s institutional dominance.
Ether’s recovery depends on stronger onchain activity, clearer upgrade benefits and renewed inflows from strategic reserve companies.
Ether (ETH) has struggled to retake the $4,000 level last seen on Oct. 29. Since then, every burst of bullish momentum has faded quickly, leaving traders questioning what’s restraining Ether’s performance despite Ethereum’s dominance in deposits and its strong institutional demand.
A key reason investors hold Ether is the staking yield and its role as a source of computing power for data processing. As such, a broad slowdown in blockchain activity naturally puts pressure on prices, even if the prior activity was driven by memecoin launches and speculative trading, both of which are unpredictable and unsustainable over time.
Ethereum has seen a 23% decrease in transactions over the past 30 days, with the number of active addresses falling by 3%. By contrast, transactions on Tron and BNB Chain rose by at least 34% in the same period, while Solana’s active addresses increased by 15%.
Competitors that are generally viewed as more centralized currently offer lower fees and a smoother user experience. For ETH to regain durable bullish momentum, the Ethereum network needs to enhance how decentralized applications interact with wallets and reduce friction in bridge usage.
The Ethereum spot exchange-traded fund (ETF) launched in the United States in mid-2024, roughly 16 months ahead of competing altcoins. Following the successful debut of Solana ETF in the US, traders now worry that competition for institutional capital will intensify as XRP (XRP), BNB (BNB) and Cardano (ADA) enter the market.
Inflows into Ethereum exchange-traded products fueled Ether’s 140% rally in the 100 days leading up to Aug. 9, when ETH reached $4,200 for the first time since December 2021. A potential rotation out of Ether could directly threaten its bullish momentum.
Ethereum network fees have plunged 88% since peaking at $70 million per week in late 2024, putting downward pressure on staking yields. Investors are now seeking clarity on the benefits expected from the upcoming Fusaka upgrade. While enhanced data processing through layer-2 rollups is welcome, t
Source: CoinTelegraph
