Ethereum

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“Ethereum’s $1,600 Support Under Threat as Network Activity Declines and Competitors Gain Ground” 
Ethereum, a leading cryptocurrency, has been teetering on the edge of losing its crucial $1,600 support level due to a combination of factors. While it experienced a notable 31.3% price surge from March 10 to March 18, this stability is now in question. 
The cryptocurrency landscape has seen a series of setbacks over the last six months. The Digital Currency Group (DCG), which owns Grayscale, has faced financial troubles, leading to concerns that a portion of the $4.8 billion in ETH deposits in the Grayscale Ethereum Trust might be liquidated to address DCG’s debts. Legal action from the United States Securities and Exchange Commission (SEC) against major exchanges like Binance and Coinbase has also created uncertainty. 
Additionally, the excitement surrounding the possibility of futures-based Ether exchange-traded funds (ETFs) has been dampened, as these instruments wouldn’t involve actual ETH coins if approved. 
On-chain metrics provide further cause for concern, indicating a stagnation in demand for Ethereum, both in terms of ETH investments and smart contract transactions. The number of addresses holding at least $1,000 worth of ETH has hit a six-month low, despite Ethereum’s price reaching a peak of $2,130 in mid-April. 
High transaction fees, which have remained above $4 for six months, are a deterrent to new investors. Decentralized application (DApp) activity on the Ethereum network also shows a lack of new users, with active addresses across top Ethereum network DApps decreasing by 4% compared to the previous month. 
Various sectors, from cryptocurrency games to decentralized exchanges and nonfungible token marketplaces, have all witnessed a decline in active users. Except for stablecoins and Wrapped ETH, no project has recorded more than 13,000 unique receiver addresses in the past week, highlighting Ethereum’s struggle with high transaction fees. 
This analysis emphasizes that Ethereum’s network is hindered by these fees, which limit user activity. Without an increase in network activity, the catalysts for a price recovery, such as potential upgrades and cost reductions, remain elusive. 
Competitors like Solana have gained ground, with Visa incorporating Solana’s blockchain settlement capabilities and Coinbase facilitating the transition of USDC to a new format. Even MakerDAO, traditionally affiliated with Ethereum, has proposed a native chain based on Solana’s codebase. 
Given the bearish sentiment in the cryptocurrency market, legal challenges to exchanges, and waning public interest in cryptocurrencies, Ethereum’s chances of falling below the $1,600 support level have grown.

Critical Crossroads for Ether as $1.6K Support Wavers Amidst Multiple Declining ETH Price Indicators

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