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The sharp decline in the price of Ethereum ($ETH) has sparked a wave of discussions among investors and analysts. In just a few days, the ETH rate lost over 15% of its value, breaking important support levels. The reasons lie not only in market volatility but also in the increasing regulatory pressure, concerns about network scalability, and the outflow of capital towards stablecoins and Bitcoin.
A significant number of traders are closing long positions, which only deepens the negative momentum. This is compounded by a decrease in the activity of DeFi projects, some of which are moving liquidity to other blockchains. Despite technological updates, the market reacts emotionally, and for now, this is not playing in favor of ETH.
However, some investors view the decline as an opportunity for long-term entry, believing in the resilience of the Ethereum ecosystem. Now, the key will be to maintain the psychological level and the further reaction of the market.