**The Downturn of Ethereum: Causes and Future Perspectives**
In recent months, the cryptocurrency market has experienced notable volatility, and Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has not been the exception. After reaching all-time highs in 2021, the value of ETH has faced a significant decline, generating concern among investors and enthusiasts of the blockchain ecosystem. But what is behind this downturn and what can we expect in the future?
### **Causes of the Decline of Ethereum**
1. **Global Macroeconomic Context**
The global economy has faced challenges such as rising interest rates by central banks (especially the Federal Reserve of the U.S.), persistent inflation, and geopolitical uncertainty. These factors have led to a lower risk appetite, affecting not only Ethereum but also other digital assets and traditional markets.
2. **Competition in Layer 1**
Ethereum is no longer the only dominant blockchain network for decentralized applications (dApps). Platforms like Solana (SOL), Avalanche (AVAX), and Binance Smart Chain (BSC) have gained ground, offering faster and cheaper transactions. Although Ethereum remains a leader in DeFi and NFTs, competition has pressured its value.
3. **The Delay in Ethereum 2.0 (The Merge and Scalability)**
The transition of Ethereum to a Proof of Stake (PoS) consensus model with "The Merge" was a significant milestone, but investors expected immediate improvements in scalability and transaction costs. However, high fees (gas fees) persist, leading to frustration in the community.
4. **Regulation and Government Pressure**
Cryptocurrencies face increasing regulatory scrutiny. Actions by governments such as China (mining ban) and warnings from the SEC in the U.S.