The Ethereum range at stock exchanges has fallen to the lowest level since November 2015, with only 8.97 million ETH available
According to an analysis of 21 March by Santiment, this decrease is largely due to the growing popularity of decentralized finances and bets. The sales pressure has decreased as more holders lock up their assets instead of keeping them on exchanges. The exchange rate stock of Ethereum has decreased by 16.4% in the last seven weeks, which indicates a long -term trend.
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But this supply squeeze has not at least benefited Ethereum. ETH has poured 47% from its peak of $ 4,105 in December to its price of March 21 of $ 1,990, making it one of the worst large cryptocurrencies.
On-chain and technical indicators suggest further disadvantage. Standard Chartered Analysters recently reduced their ETH price objective at the end of the year from $ 10,000 to $ 4,000, referring to increased competition from other networks, in particular Ethereum Layer-2s.
Because they charge fewer costs, Layer-2 networks attract more users and reduce Mainstet activity. According to Defillama factsThe volume of last week processed by Ethereum-based Dex protocols was $ 9.8 billion, of which $ 5.67 billion was treated by Arbitrum (ARB) and only basis.
Monthly Dex volume on Ethereum has fallen from $ 92 billion in December to $ 82 billion in February, with even smaller volumes expected in March. This decrease in the use of the Mainstet has influenced Ethereum’s income, an important part of its economic model. From $ 218 million in December to just $ 46 million in February, the income from Ethereum has fallen drastically.
Although transactions are now less expensive thanks to the Dencun upgrade, which reduced gas costs by 95%, the income from Ethereum continues to fall. The total value of Ethereum has also fallen from $ 76 billion in December to $ 46 billion from the moment of the press.
A potential lifeline for Ethereum could result from the release of listed funds. Both the New York Stock Exchange and the Chicago Board Options Exchange have submitted requests to the US Securities and Exchange Commission to allow ETHEEM ETFs. Given that Ethereum saw Spot ETFS $ 370 million sluice In the previous month, institutional interest rate is still low.
On the technical side, Ethereum continues to fall and is confronted with resistance at $ 2,042. The 50-day advancing average acts as a barrier and the Bollinger tires show low volatility, which suggests that consolidation.
ETH recovers from over -sold circumstances, but it lacks a considerable momentum, according to the RSI, which is 41.22. Although a weak volume indicates the uncertainty of the trader, a slight increase in any accumulation indicates.
The following goals are $ 2,163 and $ 2,370 if ETH breaks above $ 2,042. If $ 1,986 is not held, there may be a decrease to $ 1,714, where earlier purchasing interest rates were created.
