According to DefiLlama data, Ethereum’s total value locked (TVL) has dropped sharply from $63 billion in January to $44 billion in February, driven by decreased liquidity and reduced investor participation. Stablecoin inflows have slowed, signaling a decline in capital rotation into Ethereum protocols, while decentralized exchange trading volumes fell from $92 billion in December to $82 billion in February.
Futures trading on Ethereum has also taken a hit, declining from $31 billion in December to $18 billion in February, as rival chains like Hyperliquid and Solana see growing perpetual futures volumes, intensifying competition.
Ethereum’s daily chart reveals a clear downward trend, with the price consistently below its 50-day moving average of $2,282.50, reinforcing bearish momentum. Technical indicators like Bollinger Bands show heightened volatility, with Ethereum hugging the lower band, suggesting oversold conditions, while the Relative Strength Index (RSI) at 34.51 nears the oversold threshold of 30, hinting at potential for a relief rally if buying pressure increases.
However, low trading volume reflects poor market participation, and Ethereum risks dropping to $1,800 if it falls below the critical $1,875 support level, with resistance looming at $2,282 for any reversal. Stay informed on Ethereum price trends with
Crypto Market Insights on news.thecoininfo.com, and explore in-depth analysis on The Coin Info Hub at thecoininfo.com.One potential bright spot is the push to include staking in Ether ETFs. Cboe BZX has filed a request with U.S. regulators to allow staking for Fidelity’s Ether ETF, following a similar proposal from 21Shares in February. If approved, investors could earn around 3.3% in staking rewards, potentially rekindling institutional interest and boosting demand. For crypto investors, Ethereum’s current struggles highlight the challenges of DeFi competition and market dynamics, but its recovery hinges on improved network activity, regulatory developments, and investor confidence. Whether Ethereum can reclaim its bullish momentum or faces further declines, its trajectory remains a key focus, with resources like Crypto News Updates on news.thecoininfo.com keeping you updated on this critical moment.
