Why is Ethereum so underperforming?$ETH
First, all the money has been sucked dry by Bitcoin.
Institutions only recognize Bitcoin spot ETFs (big players like BlackRock), with the 'digital gold' story being simple and straightforward. Ethereum's applications are too complex, preventing new capital from entering. To make matters worse, the previous wave of DeFi and NFT hype has cooled down, and new stories like RWA haven't gained traction, leaving it completely cold.
Being stabbed in the back by insiders + crushed by external enemies
L2s stealing jobs: Layer 2 networks like Arbitrum and Optimism are sucking up all the transactions. As a result, Ethereum's mainnet transaction fees have plummeted, with ETH burned daily dropping from 2000 to 500, effectively nullifying the deflationary effect.
Technical setbacks: The long-awaited Ethereum 2.0 scaling has been delayed repeatedly, falling behind even Solana. A large number of developers and users have directly left to play Meme coins on the Solana chain, taking their money with them.
Heavy selling pressure + no one to pick up the slack
The amount of ETH unlocked after the merge is increasing (especially for protocols like Lido), but institutions aren't entering the market, and retail investors are lying flat, resulting in continuous selling pressure. What's worse is that early whales bought in at just a few dollars, holding onto a lot of coins without selling, but they definitely won't pump the price, making outside capital hesitant to enter.
Macro attacks + chaotic leverage killings
The shadow of the Federal Reserve's interest rate hikes looms large, with money fleeing to gold for safety. High-risk assets like Ethereum have been abandoned. What's worse, futures leverage is rampant, and prices are being cut back and forth by derivatives, leaving spot unable to support the market.
Chain reaction of blows
North Korean hackers dumped 400,000 ETH, causing a panic; Vitalik secretly selling coins triggered a trust crisis, leading many large holders to change their positions.
Can it turn around in the future?
In the short term, it indeed looks bleak, but die-hard fans are still betting on three cards:
Pectra upgrade: Optimizing staking and L2 collaboration may boost value.
Approval of spot ETFs: If the U.S. approves an ETF with staking features, institutional money may come rushing back.
RWA explosion: If real assets on-chain really takes off, new stories can be told.
Summary: Ethereum is currently facing four major blows: institutional neglect, technical bottlenecks, excessive selling pressure, and macroeconomic attacks, yet its foundation hasn't collapsed. Want to stage a comeback? It relies on genuine technical upgrades and creating new profitable models!
It's better to enjoy together than alone; if you reach out, I can pull you to shore!
SUI TURMP BONK PEPE OM SOL PNUT
