March has arrived like a breath of fresh air for Ethereum enthusiasts, following one of the most challenging first-quarter performances the cryptocurrency has witnessed. As data from CoinGlass suggests, Ethereum’s price has plummeted nearly 50% over the last three months.
While the general market’s uncertainty significantly contributes to ETH’s struggles, it is hard to overlook its lackluster performance even during this bullish period. These challenges hint at potential systemic issues within the second-most valuable blockchain ecosystem.
Reasoning Behind The ‘Falling Expectations’ For ETH Price
Bloomberg has recently added its voice to the discourse surrounding Ethereum’s difficulties. In a report published on March 29, the media giant evaluated the status of Ethereum, specifically in comparison to its main competitor, Bitcoin.
Launched nearly a decade ago in July 2015, Ethereum initially posed a significant challenge to Bitcoin for supremacy in the cryptocurrency arena. However, Bloomberg’s analysis indicates that the platform is struggling to fulfill its early promise as it enters a new decade.
While the global crypto landscape shows signs of improvement, particularly after Donald Trump’s election as President of the United States, the optimism may not be enough for Ethereum. Trump has been a vocal advocate for cryptocurrency, with Bloomberg noting this “Trumpian Embrace” is poised to transform the industry by potentially implementing clearer and less stringent regulations.
However, Bloomberg expresses skepticism that this shift will significantly alter Ethereum’s trajectory, which appears to be hampered by various functional issues. Notably, there has been a concerning trend of developers leaving the platform. Data from Electric Capital reveals a decline in active developers working on Ethereum-related software in 2024, contrasting sharply with the 83% year-over-year growth experienced by the Solana network.
Further complicating matters, concerns have emerged around the management of the Ethereum Foundation, particularly its approach to prioritizing upgrades without consideration of ETH’s price. Recent changes have directed traffic to layer-2 networks in an effort to reduce transaction costs, yet Standard Chartered points out that this shift has led to a diversion of activity and fees away from the primary Ethereum network, contributing to the bearish outlook for ETH’s value.
Ethereum Price At A Glance
As of this writing, Ethereum is hovering just above the $1,800 mark, reflecting a concerning slump of over 3% within the last 24 hours. As the market conditions deteriorate, this altcoin continues to search for a new low not seen in over a year.
