Cryptocurrency

Ethereum Faces Tough Road to $3,900 as Demand and Market Confidence Decline

Ethereum (ETH) is struggling to maintain momentum above $3,400 amid weak investor sentiment, declining ETF inflows, and global economic uncertainty. The world’s second-largest cryptocurrency has fallen 11% over the past week despite brief gains, reflecting broader market caution following a 4% correction in the Nasdaq index.

Analysts attribute the downturn to weak demand for spot Ethereum ETFs, low derivatives premiums, and the ongoing U.S. government shutdown, which has dampened investor confidence. The total value locked (TVL) on the Ethereum network dropped to $74 billion  the lowest since July following a $120 million exploit on DeFi platform Balancer v2. Additionally, Ethereum DApps generated $80.7 million in October, marking an 18% decline from the previous month.

While active addresses and transaction activity have shown minor improvement in November, ETH continues to underperform the broader crypto market. The upcoming Fusaka upgrade in December, aimed at boosting scalability and security, may offer a potential turnaround. However, analysts warn that without stronger ETF demand or macroeconomic recovery, Ethereum’s path to $3,900 remains uncertain.

Top 5 Cryptocurrencies by Market Value

Rank Coin Symbol Price (USD) Market Cap (USD) 24h Change
1 Bitcoin BTC $67,840 $1.34 Trillion -2.1%
2 Ethereum ETH $3,346 $402 Billion -3.4%
3 Tether USDT $1.00 $118 Billion 0.0%
4 BNB BNB $578 $87 Billion -1.6%
5 Solana SOL $164 $73 Billion +0.8%

Despite current headwinds, Ethereum’s long-term fundamentals including its strong developer community and steady onchain growth continue to position it as a key player in the crypto ecosystem, especially with upcoming network improvements on the horizon.

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