A Deep Dive from Multiple Dimensions into the Core Reasons for Ethereum's Price Stagnation:
Ethereum (ETH), as one of the core assets in the crypto market, has long failed to meet price expectations, intertwined with multiple complex factors including technology, ecology, macro environment, and market sentiment. Here are the main reasons for ETH's prolonged stagnation:
1. Macroeconomic Pressures: Liquidity Tightening and Risk Preference Shift
1. High-Interest Rate Environment Suppresses Demand for Risk Assets
The delay in expectations for Federal Reserve interest rate cuts, coupled with a strengthening dollar index, has driven funds into safe-haven assets (like gold and government bonds), leading to overall liquidity contraction in the crypto market. As a technology-driven asset, Ethereum is more sensitive to liquidity changes, with institutional holdings data showing a reduction of about 5% in ETH holdings over the past two months, intensifying selling pressure.
