Ether's Value Decline: Market Concerns and Increased Supply Lead to a 5% Drop
Ether's recent decline of over 5% raises concerns in the crypto market due to increased supply and market anxieties.
Overview
Ether (ETH) has recently dipped over 5.1%, falling below $2,600. This decline is coupled with Bitcoin (BTC) experiencing a downturn of approximately 2.9% to $95,700. The performance of ether has caused the CoinDesk 20 Index to decrease nearly 4%. This market downturn follows U.S. President Donald Trump’s announcement of upcoming tariffs, creating fears of a trade war.
Key Factors
- Ether’s decline is partly due to its circulating supply exceeding pre-Merge levels and the SEC’s delay in listing BlackRock’s iShares Ethereum Trust options contracts.
- Despite this bearish sentiment, a potential price bounce may be underway due to strong over-the-counter demand for ETH as the market stabilizes.
Market Conditions
Analysts have indicated that ether’s value reflects a pattern that has preceded previous bullish trends. Jake Ostrovskis, an OTC trader at Wintermute, highlighted significant over-the-counter demand for ETH, reinforcing the possibility of a market rebound.
Conclusion
While ether’s current struggle continues, analysts note positive demand indicators that could pave the way for a recovery in the near future.
