Ethereum Price Prediction as Daily Trading Volume Surpasses $13.5 Billion – Are Whales Accumulating ETH?
The Ethereum (ETH) price is under pressure on Thursday, having now fallen 3.3% on the back from above $3,040 to current levels around $2,930, amid high daily trading volumes of $13.5 billion, as per Yahoo Finance data.
Ether has now all but erased Wednesday’s post US CPI gains, weighed as bearish sentiments creep back into the market.
Following a recent death cross in the ETH/BTC pair, the Ether price is just hit new three-year lows.
In a Wednesday note, Coinbase research analyst David Han gave a few reasons for ETH’s underperformance.
“The approval of spot bitcoin ETFs in the US has reinforced bitcoin’s store-of-value narrative and its status as a macro asset”.
“On the other hand, open questions about ETH’s fundamental positioning within the crypto sector remain,” he continued.
The SEC is expected to reject applications for multiple spot Ethereum ETFs in the US later this month.
Many think this is because the SEC is still considering whether Ethereum might be considered a security.
I'm aware this is widely considered a possibility, but this is your official notice that the SEC is considering the security question for ETH in this upcoming spot ETF order. Note that this question was never (afaict) asked regarding a spot/futures BTC ETF product. pic.twitter.com/TwhqmTnJfC
— Scott Johnsson (@SGJohnsson) May 14, 2024
Moreover, “competing layer-1s like Solana detract from Ethereum’s positioning as the ‘go-to’ network for decentralized app (dApp) deployment,” Han said.
Ethereum’s Dencun upgrade earlier this year has also lowered the crypto’s burn rate via a substantial drop in fees.
That’s probably going to be a long-term positive for Ethereum’s adoption, as high fees discourage network use.
But some have framed the lower burn rate as
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