- Ethereum has dropped to $2,670, down 35% from its December high, as competition from Layer-1 and Layer-2 networks grows.
- Ethereum ETFs are seeing outflows, totaling $3.15B, while Bitcoin ETFs have pulled in nearly $40B.
- Three bearish patterns—death cross, rising wedge, and bearish pennant—suggest a potential drop to $2,000.
Ethereum continues to struggle, with three risky chart formations hinting at a potential 20% crash. The second-largest crypto dipped to $2,670 on Monday, now down over 35% from its December highs—and the outlook isn’t getting any better.
Ethereum Losing Ground to Competitors
Ethereum isn’t just battling price action—it’s also fighting for market dominance.
Layer-1 rivals like Berachain, Solana, and BNB Smart Chain are gaining traction.
Layer-2 solutions like Base and Arbitrum are pulling users away with lower fees.
Ethereum DEX volume hit $81B in 30 days, but Base and Arbitrum together processed $63B.
Meanwhile, Ethereum ETFs aren’t seeing the demand many expected—they’ve racked up $3.15B in outflows, while Bitcoin ETFs have pulled in nearly $40B.
Key Metrics Show Weakening Momentum
The signs of slowing interest are everywhere:
- ETH daily trading volume dropped to $126B, down from $330B in December.
- Network revenue fell to $5M on Sunday, compared to $58M in November.
- Futures open interest slid from $35B to $23.3B, showing weakened market confidence.
If this trend continues, ETH could face an even sharper correction.
Three Bearish Patterns Suggest More Downside
Ethereum’s technical charts aren’t offering much hope either—several classic bearish formations have taken shape:
- A death cross formed on Feb. 9, when the 50-day & 200-day WMA crossed downward.
- A rising wedge pattern is signaling a potential breakdown.
- A bearish pennant formation points to further weakness ahead.
If ETH breaks below $2,166, the next key support is $2,000—and if that level fails, more downside could follow.
For now? Ethereum is hanging on, but the charts aren’t looking friendly.
