Ethereum, the second-largest cryptocurrency, has underperformed so terribly that virtually all recent long-term holders are now in the red.
ETH prices have plunged to levels not seen since early 2021 (before the launch of spot ETFs in the US and major network upgrades).
Gains erased
Trader and analyst Jesse Olson shed light on the staggering on the staggering data.
Olson noted that the ETH monthly chart is about to print a lower low as the price firmly closes below key monthly support levels. The leading altcoin is an incredible "8 of the last 10 monthly candles have been red."
ETH has also recorded several unprecedented bearish signals on top of that. The altcoin has recorded a downward-sloping 200-week SMA for the first time ever. Moreover, there is a double top with a lower high.
The price of the BTC rival has returned to the early 2021 levels despite the launch of exchange-traded funds, the Merge, and a huge bull cycle.
More pressure
According to blockchain tracking account Onchain Lens, deep-pocketed traders are actively shorting the asset. "A gambler whale '0xa6e' has opened a new 22,000 $ETH short position with 25x leverage, valued at $35M," Onchain Lens reported today.
Ethereum's grim price action is heavily tied to a series of compounding issues.
The much-hyped spot ETFs have now turned into a persistent headwind. The ETFs have recently suffered severe and consistent net outflows. Institutional demand has cooled dramatically.
Ethereum is also suffering from the consequences of its own scaling roadmap. After the Dencun upgrade, Ethereum's base layer (Layer-1) revenue plummeted.
Moreover, the Ethereum Foundation is currently facing major financial issues as well as an ongoing exodus of developers.
However, as reported by U.Today, Fundstart's Tom Lee, who is also the chairman of top ETH Bitmine Technologies, remains optimistic in the long-term, recently warning panic-sellers not to make any hasty decisions.
U.Today Editorial Team
Dan Burgin
