Main Points:
- Ethereum facing significant decline against Bitcoin
- Ether’s sell-off accelerated due to weak response from institutional investors
- Ethereum losing market share to layer-2 networks
- Smart money investors selling off Ethereum assets
Ethereum’s Decline Against Bitcoin
Ethereum has experienced a drastic decline against Bitcoin, reaching its lowest level since April 2021. The cryptocurrency has dropped by over 55% from its peak in 2021, trading at 0.039 BTC. This downward trend has been exacerbated by the lack of support from institutional investors and the rise of layer-2 networks offering faster speeds and lower transaction costs compared to Ethereum.
Ether’s Sell-Off and Institutional Response
The sell-off of Ether has been driven by the reluctance of institutional investors to engage with spot ETFs, leading to net outflows of over $581 million from Ether ETFs. This lack of institutional support has impacted Ether’s price, which has fallen to its lowest point since February, now trading near $2,300. Additionally, recent liquidations by the Ethereum Foundation and Vitalik Buterin have contributed to the downward pressure on Ether.
Ethereum’s Market Share and Smart Money Investors
Concerns about Ethereum losing market share to layer-2 networks and the selling activity of smart money investors have further fueled the decline in Ether’s value. Entities like Jump Trading have significantly reduced their Ether holdings, signaling a shift in confidence towards other assets within the cryptocurrency market.
