Ethereum Ether Cryptocurrency (ETH) has declined dramatically over the past week, down 7% at the time of writing. Although assets have remained up over 30% over the last 30 days, the sudden decline is certainly relevant to investors. A further rise in ETH prices seems unlikely due to weak network activity and increased competition among other coins.
Ethereum has several factors that contribute to DIP. Total Ethereum Network sediment, measured in locked totals (TVL), fell to 25.1 million ETH on June 5, down 17% from the previous month. Key contributors to Ethereum’s TVL decline include Sky (formerly Makerdao), which reduced ETH from 48% to 2.1 million, and Curve Finance, which reduced 24%. Now, rivals Coin Bitcoin and Solanasol have improved performance, leaving investors looking away from ETH.
Additionally, as of June 5th, Ether Futures Premium had fallen from 6% last week to 5%. This indicates a slight reduction in leveraged length position, although the premium remains within the neutral range. The last late January when ETH futures traded above the 10% premium suggested a lack of consistent bullish convictions among investors.
Meanwhile, ETH began meetings in early May after the launch of the Pectra Update. The upgrade could have caused a surge in investor confidence. At one point, ETH registered a double-digit percentage on its daily chart. Additionally, institutional interest in ETH has increased, with support close to the $2,500 level. Investors may be hoping to collect ETH prices over the coming weeks despite this week’s dip.
Demand for ETH remains particularly from the institutions, but other metrics suggest that the Bulls will likely not be able to break $3,000 in the short term. Concodex analysts point out the same thing, but this dip suggests that it’s a good time to buy Ethereum. “Current Ethereum price forecasts show that Ethereum prices will rise 7.32%, reaching $2,755.50 by July 4, 2025.” Coming in mid-July, Cincodex suggests that Eth Reclaim and Surge will surge above the 3k level.
