Reasons for Ethereum (ETH) Drop

Key Points
1. Ethereum Price Drop

Ethereum (ETH) is trading at $2,640.02, down 5.1% in 24 hours.

Bitcoin is also down 2.9% at $96,448.32.

The drop reflects the overall bearish trend of the market, which was triggered by US President Donald Trump’s announcement of trade tariffs.

2. Ethereum Supply Pressured by Rising

Ethereum’s total circulating supply has increased again after the Merge, even though it should have been lower.

Transaction fees were reduced after the “Dencun” upgrade, which is causing less ETH to be “burned”, and the overall supply is increasing.

Ethereum’s supply has increased by 8,242 ETH so far.

3. SEC Delay and Market Reaction

The US SEC has delayed the listing of BlackRock’s iShares Ethereum Trust (ETHA) options contract, adding to market uncertainty.

4. Competition and Pressure on Ethereum

Ethereum’s value is declining due to increased competition from Solana and other blockchain networks.

ETH’s value against BTC has fallen to a 2021 low.

JPMorgan says Ethereum lacks a strong “narrative” that attracts investors like Bitcoin.

5. Can ETH bounce back?

According to analysts, Ethereum’s price is in a pattern that has been seen before a major “bullish rally” in the past.

Over-the-counter (OTC) ETH demand has increased, potentially signaling a “Surprise Bounce.”

According to Santiment, the price of ETH could rebound after the market stabilizes.

What is important to you?

The $2,600 level could be a key support. If ETH breaks below it, further declines are possible.

Ethereum could rally again if the market stabilizes, especially if the SEC quickly approves ETH ETFs.

If Bitcoin remains strong and approaches $100K, Ethereum could also improve.