The price of ether (ETH) exceeded $ 1,700 after 16 days of sales pressure caused by macroeconomic uncertainty and a sharp drop in onchain activity. Despite the rebound, Ether has underperform the Altcoin market wider 23% since the start of the year.
Some traders say that ETH is ready for a “generational” bull by offering a “really” decentralized and without authorization financial system, but is this really the case?
Ether was one of the rare major cryptocurrencies not to reach a new summit of all time in 2025, unlike competitors such as Solana (Sol), Tron (TRX) and BNB (BNB).
Some criticisms argue that the evidence of work has removed a competitive advantage that Ethereum once had on its rivals.
Ethereum Fee Drop Signals ETH Low price
Finally, Ether can surpass its competitors, if only for a short period, and influencers who call for a “generational background” celebrate their predictions, despite the lack of solid fundamentals to support the sustainable prices. However, taking into account the 95% drop in Ethereum costs since January, the chances of an immediate ethlen push seem low.
The low demand for data processing on the Ethereum network means that the ETH becomes an inflationary, because the integrated burning mechanism is not enough to balance the new parts emitted to cover the rewards of implementation.
Despite being the clear leader in the total locked value (TVL), traders are generally not interested in this metric because it has not been translated as a higher demand for the Ethereum network or increased rarity for ETH.
Consequently, even if the fundamentals of Ethereum improve, optimism among ETH holders is decreasing, while competitors – in particular Solana (soil) and XRP investors (XRP) – hope for the approval of their funds (ETF) negotiated on cash. Currently, ETF Spot in the United States are only available for Bitcoin (BTC) and ether (ETH), so additional offers would probably reduce the potential institutional demand for Altcoins.
Adding to the concerns, the ETHE of the ether of the American points experienced $ 10 million in net outings between April 21 and April 23, while similar BTC instruments have experienced record entries.
History shows that the rallies of eTh prices rarely last last last
Historical evidence is not favorable to lasting outperformance compared to competitors, which reduces the chances of a rally of sustainable eths.
In relation: Bitcoiner Planb Slams ETH: “Centralizing and premunal” Shitcoin
For example, Ether’s market share in Altcoin capitalization reached a low point in June 2022 at around 26.5% when the price of the ETH dropped by $ 1,100. After a quick rally at $ 2,000 by August 2022, the momentum has faded and the price of ETH fell below $ 1,200 less than three months later. This sudden correction probably left many frustrated investors because they had to wait eight months for ETH to recover $ 2,000 in April 2023.
A similar scheme occurred in April 2021, when the market share of Altcoin d’Ether reached the bottom at 26.8%. After that, the price of the ETH increased from $ 2,100 to $ 4,200 in May 2021, to fall below $ 2,000 the following month. Again, the merchants who bought near the cycle had to wait six months just to recover their investment. This story has taught ether traders to quickly make profits, which reduces the chances of reaching a new summit of all time.
It is difficult to determine what triggered races with previous ether bulls, especially since the story has gone from utility tokens to NFT markets, artificial intelligence, the same and, more recently, to RWA tokenization. While some influencers believe in a strong momentum of the ETH, others warn that there could be a new decrease of 15% compared to Bitcoin’s performance.
In the end, historical evidence does not support a sustainable ETH price rally, even if it is smuggled compared to the wider Altcoin market capitalization.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
