Ether (ETH) has dropped by more than 5.1% in the last 24 hours to under $2,600, while Bitcoin (BTC) has dropped by about 2.9% over the same period to $95,700.
Altcoin’s biggest price performance will impact the Coindesk 20 index next week’s stock market amid the recession of the market, US President Donald Trump, which has affected the stock market next week, and next week’s They announced plans to announce mutual tariffs and plans to escalate the fears of a trade war. The country’s major trading partner.
However, the poor performance of the ether is among other factors that affect cryptocurrency, particularly. Ethereum Merger – The network was merged with the beacon chain that moved it to the Shoop-of-Stake (POS) consensus mechanism, but it was widely expected that supply would drop, and did so for several months .
However, this trend was reversed in April a few weeks after the highly anticipated “Dencun” upgrade activation. This upgrade reduced data charges and reduced the growth of the Layer 2 network by introducing the transaction “BLOBS”. This helped reduce transaction fees.
The reduction in transaction fees on Ethereum has reversed the cryptocurrency supply trend, meaning less ether. Since the introduction of EIP-1559 in 2021, all ether transactions have a base fee to burn, which will help reduce the supply of ETH.
Due to the decrease in burned ether, ETH supplies have grown over the past few months, with their circulating supply increasing by 8,242 ETH since merge, data from ultrasound.money shows.
Ether also delayed the Securities and Exchange Commission (SEC) recently delaying its decision on BlackRock’s Ishares Ethereum Trust (ETHA) listing options agreement.
Other factors have also influenced Ether, such as restrictions on the Ethereum Foundation and increased competition with other networks, including Solana, with value compared to BTC recently falling to 2021 lows. In its research report, JPMorgan states that ETH lacks compelling stories like BTC.
Despite its bearish performance, analysts point out that ether prices reflect the patterns they saw. On Friday, Jake Ostrovskis, OTC trader at Crypto Market Maker WinterMute, told Coindesk he saw “there is strong commercial demand for ETH.”
Santiment’s analysts pointed out on social media that a potential setup for surprise bouncing was first mined as bearish sentiment was first mined to affect cryptocurrency. It points out that there is a possibility that this may occur. Stabilize. ”
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