$ETH (Bearish Outlook)
Ethereum is showing signs of short-term weakness, and here’s why some traders are cautious:
– Rising Competition: Layer 1 alternatives like Solana and Avalanche are gaining momentum, eating into Ethereum’s dominance, especially in DeFi and NFT activity.
– High Gas Fees Resurface: Despite upgrades, congestion and fee spikes are returning during high activity periods — a persistent issue hurting user experience.
– Price Structure Breakdown: Technically, ETH has lost key support levels and is struggling to regain upward momentum. If it fails to reclaim $3,000 with volume, further downside could follow.
Momentum favors caution right now. Eyes on support near $2,700 — a breakdown there could accelerate the drop.
