The frequent bearish conditions in the market have crashed the prices a majority of the cryptocurrencies in the initial days of March. The most affected remain the largest cryptocurrencies. Ethereum and Bitcoin have lost over 10% in one week, turning them into the largest market losers.
Ethereum remains one of the biggest losers. One of the reasons for the high drop in the ETH market is the high gas fees, the transaction fees on the ETH blockchain. It is the amount of ETH. This has caused few investors to put money into Ethereum, making the scheme less attractive than smaller entrants like Bitgert.
But Ethereum upgrades that are ongoing might make this cryptocurrency even more competitive in the coming weeks. This current upgrade should make the ETH chain cheaper and faster by bringing down the gas fee. This will help it to better compete with other cryptocurrencies like Bitgert.
Long Down Slide For Ethereum Continues
Ether continues to face troubled times as a 5-week descent continues. Buyers expressed reluctance to defend the price as resistance at the rate of $3,000 was succeeded by a correction of 17.5% within 5 days.
Though the high transaction fees are down to $13 from the $19 high, it is incompatible when compared to most games, decentralized transactions, and non-fungible tokens.
The total value locked in Ethereum has also declined 55% by March 8 which should be a major worry for the crypto. Data reveals an all-time low in the proportion of assets sealed in smart contracts when compared to the competition.
This indicator gives a partial explanation of the reason for Ethereum being on a downward slide since February.
Metrics reveal that there is barely any indication that Ethereum prices will turn bullish for a short period. The data reveals that traders are not willing to go for long positions, revealed by the long-to-short ratio and the basic rate.
Ether is losing out to competition and is also delaying migration constantly to a proof-of-stake solution which is in all probability putting off competition and causing unease among long-term investors.