Ethereum (ETH) It recently dropped below the critical level and Psychological support level at $3000Which has raised concerns about the price of ETH rising. This development comes amid continued decline in revenue generated from Ethereum Network.
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Ethereum collapses below $3,000
Ethereum price has dropped below $3,000, and this downtrend is believed to be due to several factors. One of them is outflows, which Ethereum ETFs I have been suffering ever since. The trade started On July 23. Data These funds again saw net outflows of $54.3 million on August 2, data from Farside Investors showed.
These funds did not have the desired impact on the price of ETH as expected, as the price of Ethereum has dropped by more than 10% since it started trading. Data A study by Soso Value shows that these funds have experienced cumulative net outflows of $510.7 million since their launch. Grayscale Ethereum Fund (ETHE) The IMF has been solely responsible for these outflows, with $2.12 billion leaving the fund since its inception.
This put significant selling pressure on Ethereum, leading to its recent downtrend. Ethereum dropped below $3,000 thanks to the broader cryptocurrency market bearishness led by Bitcoin. Ethereum was expected to suffer a significant decline following Bitcoin’s decline. Data From Market Intelligence Platform In the mass It appears that both assets currently have a strong correlation in price.
Ethereum dropping below $3,000 is certainly a concern for investors, given how far it could go. However, Ethereum has quickly reclaimed the $3,000 level over the past three months whenever it has dropped below $3,000. This is a crucial support area. So, it may not be any different this time, especially with data from IntoTheBlock indicating strong demand for Ethereum at this price level.
If Ethereum fails to maintain this range, the second-largest cryptocurrency is at risk of falling to Less than $2700which is a more important support area for ETH as 11.11 million addresses bought the token at an average price of $2,647.
Ethereum Revenue Drops to New Lows
Information from Symbolic station The data shows that Ethereum revenue has fallen to new lows, down 40.4% in the last 30 days and 44.8% year-over-year. The fees earned on the network haven’t been impressive either. Over the past 30 days, Ethereum users have paid $92.97 million in feesdown 32.8% and 38.3% year-on-year.
This decrease in Ethereum Revenue The fees can be attributed to a decrease in the number of daily active users of the network. Other data from Token Terminal shows a 9.8% decrease in Number of monthly active users on EthereumThe same applies to Weekly and daily active usersdown 20.1% and 15.3% respectively.
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At the time of writing, Ethereum is trading at around $2,979, down over 5% in the last 24 hours, according to Data From CoinMarketCap.
Featured image by Pexels, chart by TradingVIew
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