Ethereum (ETH) has struggled to break through the key resistance level of about $2,760 over the past two weeks. As a result, the price has dropped more than 5 percent in the last five days, trading around $2,495 during the early European session on Friday, October 25.
This major altcoin, with a fully diluted market valuation of around $300 billion and a daily trading volume averaging $15.8 billion, is showing signs of short-term consolidation before a potential breakout toward an all-time high.
What’s driving this price slump? What does the future really hold for Ethereum?
Even though Ethereum dominates the decentralized finance (DeFi) sector—holding approximately $87 billion with a total value locked (TVL) of about $46.7 billion—newer layer one chains, especially Solana (SOL), are challenging its position. In the last 24 hours, the Solana and Tron networks registered about 4 million and 2.2 million active addresses, respectively, while Ethereum recorded only around 377,000.
The rise of these efficient and affordable networks poses a real threat to Ethereum’s dominance in the Web3 ecosystem.
The recent approval of spot Ether ETFs and spot Bitcoin (BTC) ETFs has revealed a growing trend: institutional investors are increasingly choosing Bitcoin over Ethereum as an investment. Current market data shows that U.S. spot BTC ETFs have accumulated net assets of about $66 billion, while Ethereum’s ETFs hold only around $7 billion, following a significant decline in Grayscale’s ETHE.
Crypto analyst Benjamin Cowen believes that Ethereum’s dominance will likely continue to drop in the near term, with a potential rebound expected in 2025.
From a technical standpoint, Ethereum’s price has faced strong resistance around the $2,800 level in recent months. The altcoin is forming a potential ascending triangle pattern on the daily timeframe, indicating that buyers are struggling to break through the upper boundary.
This ongoing resistance could signal a crucial moment for Ethereum as it aims to regain its former strength.
What do you think? Will Ethereum bounce back or continue to struggle?
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