Cryptocurrency analysts predicted Ethereum’s fall to $ 2600

According to Daniel Yang, Chief Investment Officer of Kryptanium Capital, the deterioration of the fundamental parameters of the Ethereum network is an obstacle to the inflow of fiat funds into the ecosystem. Daniel Yang believes that if ETH fails to hold the level of $ 2950, there is a high probability of the cryptocurrency’s collapse to $ 2500-$ 2600.

According to him, the unstable performance of the blockchain in the current cycle has a negative impact on the value of ethereum. Experts from the analytical company 10X Research share a similar view.

According to their report, the network is currently experiencing a sharp drop in activity, which has led to low average transaction fees. The majority of transactions are now conducted on second-tier blockchains — last month, a record 82% of the total number of transactions were made on the three largest L2s.

Daniel Yang emphasized that the situation related to the policy of the US Securities and Exchange Commission (SEC), which considers ether a security, does not add to the optimism. Earlier, the American management company Grayscale Investments filed a notice with the SEC to withdraw its application to create an exchange-traded fund for ether, Grayscale Ethereum Futures Trust.