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crypto.news 2025-03-12 07:54:51

Ethereum struggles below $1,900 as DeFi demand weakens and competition rises

Ethereum price is still trying to recover the $1,900 mark as weak DeFi metrics and increased competition weigh on its price. Due to decreased liquidity and investor participation, the network’s total value locked decreased from $63 billion in January to $44 billion in February, according to DefiLlama data . Stablecoin inflows have slowed down, indicating a slower capital rotation into Ethereum ( ETH ) protocols. The data also shows that decentralized exchange trading volumes are down, from $92 billion in December to $82 billion in February. As other chains like Hyperliquid ( HYPE ) and Solana ( SOL ) register growing perpetual futures trading volumes, futures trading on Ethereum has suffered, dropping from $31 billion in December to $18 billion in February. Ethereum’s revenue has taken a major hit, falling from $193 million in December to just $26 million in February. Declining transaction fees and low network activity have caused the sharp decline. You might also like: SEC postpones Grayscale XRP ETF decision, Franklin Templeton joins applicants In addition, according to SoSoValue data , spot Ether ETFs have experienced withdrawals for four weeks in a row, totaling $176 million over the past month. This trend shows that institutional demand for Ethereum has reduced. Ethereum is currently trading at $1,876, struggling to maintain the crucial support level of $1,875. With ETH consistently trading below its 50-day moving average of $2,282.50, the daily chart shows a clear downward trend, reinforcing the bearish momentum. Ethereum technical analysis. Credit: crypto.news Bollinger Bands show higher volatility. Ethereum is hugging the bottom band, suggesting oversold conditions. At 34.51, the relative strength index is near the oversold threshold of 30, showing poor buying pressure but the possibility of a relief rally should demand increase. The low trading volume indicates poor market participation. ETH may move toward $1,800 if it breaks below $1,875; while a reversal would face resistance at $2,282. Ethereum must reclaim its 50-day moving average to see a bullish shift, but price movement is still under pressure. One important development to keep an eye on is the push to include staking in Ether ETFs. Cboe BZX has filed a request for U.S. regulators to allow for staking of Fidelity’s Ether ETF, following a similar request from 21Shares in February. If approved, investors could earn around 3.3% in staking rewards, which might attract more institutional interest. Read more: Declining BTC whale ratio on Binance could signal market rebound, says analyst

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