Ether Price Falls Over 5% Amid Market Downturn and Increased Supply
Ether (ETH) has decreased over 5.1% in the last 24 hours, falling below $2,600. Bitcoin (BTC) is down approximately 2.9%, now at $95,700. This decline contributed to a nearly 4% drop in the CoinDesk 20 Index, influenced by a broader market downturn linked to U.S. President Trump's upcoming tariff announcements.
Key factors affecting ether include:
- The circulating supply of ETH recently surpassed pre-Merge levels.
- The Ethereum Merge initially reduced supply but reversed trends post-April.
- The “Dencun” upgrade lowered layer-2 network growth and transaction fees, decreasing burned ether.
- Since the Merge, ETH’s circulating supply has increased by 8,242 ETH.
- The SEC delayed its decision on BlackRock’s iShares Ethereum Trust options, impacting performance.
- Heightened competition from networks like Solana and a lack of a compelling narrative compared to BTC contribute to challenges for ETH.
Despite these bearish trends, some analysts suggest potential bullish momentum may follow this pattern. OTC trader Jake Ostrovskis noted strong demand for ETH, while Santiment analysts observed a decrease in profitable ETH tokens, indicating a possible setup for a bounce as market conditions stabilize.