Ethher (ETH) has fallen more than 5.1% in the last 24 -hour period less than $ 2,600, while Bitcoin (BTC) has dropped around 2.9% during the same period to $ 95,700.
The largest Altcoin prices performance has reduced the Coindesk 20 index by almost 4% during the period in the middle of a market recession that also affected shares markets on the president of the United States, Donald Trump, announcing Plans to reveal reciprocal tariffs next week, increasing the fears of a commercial war with the commercial war with the commercial war the main commercial partners of the country.
However, Ether’s low performance occurs in the midst of other factors that specifically influence cryptocurrency, including its circulating supply that recently increased the levels prior to shit. The fusion of Ethereum, the fusion of the network with the beacon chain that led it to a mechanism of consensus for testing stagnant (POS), was widely expected to help its supply to fall, and did so for months.
However, the trend was reversed in April, weeks after the activation of the highly anticipated “dencun” update. This update suppressed the growth of layer 2 networks by reducing their data rates and enter transaction “blobs”, which helped reduce transaction rates.
The reduction of transaction rates in Ethereum has meant that less ether is burned, which in turn reversed the cryptocurrency supply trend. Since the introduction of EIP-1559 in 2021, each ether transaction has a base rate that burns, which helps reduce the supply of ETH.
The reduction in the burned ether has seen the supply of ETH grows in recent months to the point that its circulating supply has grown by 8,242 ETH from the merger, the ultrasound data. Money is shown.
Ether also saw the Bag and Securities Commission (SEC) recently delay his decision on the listing options for Ishares Ethere Trust (Etha) of Blackrock, which could also be weighing the performance of the cryptocurrency.
Other factors, including a restriction of the Ethereum Foundation and greater competition from other networks, including Solana, have also affected Ether, whose value in relation to BTC recently fell to 2021 minimums. In a research report, JPMorgan has said that ETH lacks a convincing narrative like BTC
Despite the bearish performance, analysts have indicated that Ether’s price is reflecting a pattern that he saw before he was followed by a renovated bullish impulse. On Friday, Jake Ostrovskis, an OTC merchant in Crypto Market Maker Wintermute, told Coindesk that he was watching “a strong free sale demand for ETH.”
Santimental analysts pointed out on social networks that there has been a drop in the amount of ETH tokens with a gain, since they were extracted for the first time, since the bearish feeling affects cryptocurrency, which could be a potential configuration for a Surprise rebounds “once the encryption markets are able to stabilize.”
