The price of Ethereum has significantly “lagged” behind the digital gold since the activation of The Merge and the full transition to the Proof-of-Stake (PoS) consensus algorithm. This is written by The Blockciting CryptoQuant analysts.
According to them, the dynamics are unconvincing even after the July launch of spot Ethereum ETFs. ETH/BTC quotes at 0.0425 are the lowest since April 2021.
Experts added that since the transition to PoS, Ether has lagged behind other assets like Solana and BNB — by 53% and 18%, respectively. At the same time, the “sliding” of the Ether price may continue in the future.
Why is Ethereum falling?
As the main reason for the negative dynamics, CryptoQuant specialists noted low on-chain activity, even in comparison with Bitcoin. One of the signs of stagnation is a decrease in the total volume of transaction fees, including due to the Dencun upgrade. The latter contributed to a decrease in the rate of ETH burning and, consequently, to the growth of inflation.
According to analysts, investors and traders are showing a greater preference for Bitcoin than Ethereum, which is reflected in corresponding changes in spot trading volumes.
Earlier, QCP Capital representatives drew attention to the significant lag of Ethereum from the first cryptocurrency in August. They also warned about the likely continuation of the market correction in September.
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Source: Cryptocurrency
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