The fact that Ethereum fell below $ 1,600, one of the most critical support levels in terms of market value, increased concerns among investors. Behind the price decline, there are multi -layered reasons such as depreciation against Bitcoin, uncertainties for defi regulations, and multi -chain projects forcing Ethereum’s market share. At the same time, the fact that crypto currency investors take cautious positions against macroeconomic risks increases the pressure on Ethereum. Technical data indicate that the price can test lower levels.
Legal Developments Forcing Investor Confidence
Last week, former US President Donald Trump’s abolition of a compulsory authentication (KYC) arrangement for decentralized finance (defi) platforms led to harsh fluctuations in the market. The abolition of this arrangement, which he described as “Bureaucratic Overreach”, that is, bureaucratic extremism, was welcomed in some circles, causing uncertainty among Ethereum investors.
This step has undergone the trust of US -based investors in defi projects and accelerated capital outputs. According to the fashion show data, over $ 12 billion has been withdrawn from Ethereum -based platforms since March 2025. This exit strengthens the perception that Ethereum lost power in the defi ecosystem.
Is Ethereum behind in competition?
Ethereum’s dominance among the Layer-1 blocks of the blocks is seriously shaken by the rise of new generation chains, such as Solana, Avalanche and Coinbase-backed Base. In particular, the stagnation in the number of daily active addresses and transactions on the network reveals that the user interest is reduced. The decline in the total locked value of Ethereum shows that competition has reached serious dimensions.
Technical analyzes reveal that the price is approaching the support level of $ 1,385; It is considered that $ 1,730 is a critical threshold for a possible recovery. The fact that the ETH/BTC ratio has decreased below 0.02 indicates that investor sensitivity is shaped in the direction of risk avoiding risk.
Macroeconomic factors increase uncertainty
Although the slowdown in US inflation is considered as a positive development, the trade tensions between the US and China and the inconsistencies in the US Securities and Stock Exchange Commission (SEC) regulation policy keep the risk perception in the market. For this reason, while the tendency to Bitcoin, which investors see as a safer harbor, increases, sales pressure in more volatility such as Ethereum is intensified.
However, Ethereum’s long -term potential is still strong. The size of the developer community and the visibility of Ethereum in the crypto currency world continue to support this long -term perception. However, in the short term, technical indicators and cautious air in the market may adversely affect price movements.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
