ethereum price has remained under pressure as currency reserves rise, ETF inflows stagnate, and its market share in decentralized finance declines.
ethereum (eth) was trading at $2,550 on Friday, November 1, down 37% from its highest level this year. By contrast, bitcoin (btc) is only 4.7% below its all-time high.
Ether faces several challenges. Data of eth/chart/exchange-flows/exchange-reserve?exchange=all_exchange&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line” target=”_blank” rel=”nofollow”>CryptoQuantum shows that token volume on exchanges has increased in recent months, suggesting that some holders have started selling. Those allegedly selling include the ethereum Foundation and Vitalik Buterin.
Second, ethereum spot ETFs are seeing slow demand from investors. According eth-spot” target=”_blank” rel=”nofollow”>sosovalueCumulative outflows amount to $480 million, while bitcoin ETFs have recorded more than $24 billion in inflows.
ethereum has also lost market share in the decentralized exchange sector to Solana (SOL). The data shows that Solana DEX platforms like Raydium and Orca handled $51 billion in volume in October, surpassing ethereum's $42 billion.
ethereum's market share could face further pressure when Uniswap launches Unichain, its layer 2 blockchain.
Furthermore, ethereum's control over the stablecoin market has dropped to approximately 48%, followed by Tron, BNB Smart Chain, Arbitrum, and Base. A year ago, its participation exceeded 60%.
Stablecoins have become an important part of the cryptocurrency industry. For example, Tether made a net profit of $2.2 billion in the third quarter, bringing its nine-month profit to $9 billion.
Additionally, data shows that stablecoins are booming in South Korea, where they have become instrumental in cross-border payments. Highly sanctioned countries such as Iran, North Korea and Russia have also adopted these tokens.
ethereum price could drop
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According to analyst Peter Brandt, there is a high probability that the price of ethereum will decline in the coming weeks. It predicts a drop to $1,551, implying a 40% decline from current levels.
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The daily chart shows ethereum holding below the 50-day moving average and key support at $2,817, the neckline of the double top pattern at $3,975.
ethereum has also formed a bearish pennant pattern, with the triangle pattern approaching its confluence point. This suggests a possible bearish breakout in the coming weeks. If this happens, the initial level to watch will be $2,117, its lowest point on August 5.
