Since the most recent breakout attempt on May 6 only lasted a little over 24 hours, the price of ether has been trapped below $1,920 for more than 16 days now, which is quite worrying. With this little price boost excluded, Ether’s ETH tokens are down $1,793 journey under $1,920 began on 1st April, which is more than the last thirty days. Investors’ reduced appetite can probably be attributed to the $8.80 standard transaction price on the Ethereum network, but the economic climate has also been a significant factor. On 22nd May, Jamie Dimon, CEO of JPMorgan Chase, stated that it is not possible to foresee how the Federal Reserve’s monetary policy, which aims to reduce inflation, will turn out.
Although The Overall Ethereum Deposits Are Steady, There Is A Catch
“You’re already seeing the money tighten up,” Dimon continued, “because for an institution like a bank, holding onto capital is as simple as not making the next credit.” The tension surrounding the US debt ceiling dispute between Joe Biden’s government and the US Congress is most likely to blame for institutional investors’ deteriorating views of cryptocurrencies. Following CoinShares’ most recent “Digital Asset Fund Flows Report,” withdrawals from all types of virtual asset transaction products totaled $232 million during the previous five weeks. In addition, two indicators affect the price of Ether and indicate a decline in interest in its decentralized financial ecosystem, as well as a lackluster professional trader leverage trading activity.
High gas costs brought on by the Ethereum network’s constrained processing power have significantly decreased demand for the use of smart contracts. Although initially there appeared to be no impact, the average trading charge has stayed above $8 for the past five weeks. The network’s TVL, which was constant at 15.1M Ethereum compared to four weeks earlier, is getting close to its lowest point since August two years back.