Ethereum Faces Challenges as Price Hovers Near $1,875
Ethereum is struggling to regain its footing, wiht the price hovering around $1,876. Several factors are contributing to this downward trend. The network’s total value locked has dropped considerably, from $63 billion in January to $44 billion in February, according to DefiLlama data.
stablecoin inflows have slowed, indicating less capital is moving into Ethereum protocols. Decentralized exchange trading volumes have also decreased, falling from $92 billion in December to $82 billion in February. This decline is partly due to increased competition from other chains like Hyperliquid and Solana.
Ethereum’s revenue has taken a major hit,dropping from $193 million in December to just $26 million in February. Lower transaction fees and reduced network activity are to blame. Spot Ether ETFs have seen withdrawals totaling $176 million over the past month, suggesting reduced institutional demand.
technical analysis shows Ethereum hugging the bottom bollinger Band, indicating oversold conditions. The relative strength index is near the oversold threshold, hinting at a possible relief rally if demand increases. However, low trading volume suggests poor market participation.
ETH may move toward $1,800 if it breaks below $1,875. A reversal would face resistance at $2,282.To see a bullish shift, Ethereum must reclaim its 50-day moving average.
One potential luminous spot is the push to include staking in Ether ETFs. cboe BZX has filed a request for U.S. regulators to allow staking of Fidelity’s Ether ETF. If approved, investors could earn around 3.3% in staking rewards,which might attract more institutional interest.
