Ethereum $2,099.27As of February 24, it was traded below $ 2,600 and led to the liquidation of a collateral position of $ 918 million in the last 15 days. Investors question how the network will deal with technical improvements and competitive pressures in order to overcome the $ 2,500 level. The upcoming Pectra update aims to reduce process fees, but deficiencies in liquidity distribution and layer-2 integrations increase concerns. The decrease in the demand for corporate investor and the $ 406 million output from Spot ETFs adversely affect short -term expectations.
Technical and competitive challenges in front of Ethereum
The Ethereum network plans to improve transaction speed and costs with Pectra update. However, liquidity disintegration between layer-2 solutions and limitations in user access cause criticism that the effect of the update may be limited. The empty block problems reported in the test network trigger doubts about the stability of the network, while the opponent block chain Solana stands out with the memecoin mobility.
Block chain analysts emphasize that Ethereum is at risk of losing its market share if it cannot solve scalability problems. In order to increase the ease of use in the smart contract area, it is stated that the integration of layer-2 protocols should be accelerated. Despite the decrease in the transaction fees on the network, the annual 0.7 %supply increase slows down the adoption rate.
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Decrease in corporate demand and network activity
The corporate demand, which resulted in 9 in the last 10 trading day, indicates that Ethereum has lost confidence in corporate investors. Net outlets from Spot ETFs show that investors are cautious about short -term returns. Although it is estimated that the demand may increase by adding the amount of ETH to the ETFs, the current supply dynamics weaken this expectation.
The slowdown in network activity draws attention with a decrease in transaction volume and wage income. Analysts say Ethereum should reduce the rate of supply increase for sustainable growth and encourage the adoption of layer-2 solutions. It is warned that the US Securities and the Stock Exchange Commission’s policies for competing projects can also put additional pressure on Ethereum.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
