Ether Faces Challenges Amid Market Uncertainty

Coin

According to Cointelegraph, Ether( ETH) experienced a 14.2% price surge after rebounding from the $2,000 support level on March 4, yet it has struggled to maintain levels above $2,200. Over the past two weeks, ETH has underperformed the broader cryptocurrency market by 11%, reflecting investor uncertainty. To regain bullish momentum, several key obstacles must be addressed.

The reasons behind traders reducing ETH exposure are not entirely clear, but several factors likely contributed to the weaker sentiment. These include declining onchain activity, a lower total value locked (TVL), a net positive ETH issuance rate, and speculation surrounding a potential U.S. strategic digital asset reserve. Overall, demand for ETH as Ethereum’s native token appears weaker. Ether investors may be concerned about the growing likelihood of Solana (SOL) securing approval for spot exchange-traded funds (ETFs) in the U.S., which could increase competition for institutional capital. Currently, only Bitcoin (BTC) and ETH hold this status, yet Ether ETFs saw $336 million in net outflows between Feb. 19 and March 4. While this highlights weak ETH performance, it appears more as a symptom than a primary cause. Ethereum maintained its leadership in 7-day decentralized exchange (DEX) volume, reaching $22.45 billion. However, the gap with competitors narrowed, particularly as Solana saw a 4%…