Ethereum

DeFi

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Concerns about potential inflationary pressures have been raised by <a href="https://ultrasound.money/">Ethereum's</a> significant challenges as network activity declines and issuance stays constant. In terms of price movement and on-chain metrics, the charts present an unsettling image of <a href="https://u.today/ethereum-eth-things-are-getting-even-worse-solana-sol-shows-catastrophic-breakdown-massive-us">Ethereum's</a> current situation.&nbsp;
Ethereum has been losing ground and finding it difficult to hold onto support levels. A bearish trend is evident in the chart's distinct pattern of lower highs and lower lows. At the moment, ETH is perched at a crucial support level of about $2,500, and if this support breaks, there may be additional losses.&nbsp;
According to the most recent price action, <a href="https://u.today/death-cross-is-not-the-only-thing-ethereum-eth-bulls-should-worry-about">Ethereum</a> appears to be in a precarious situation and could fall even further if selling pressure picks up. Ethereum is getting close to oversold territory, according to the Relative Strength Index, which might cause a brief uptick in price.&nbsp;
<img alt="ETHUSD" data-entity-type="file" data-entity-uuid="e43a733f-ab06-4840-b8cf-bc13a52dbe3c" src="https://u.today/sites/default/files/inline-images/image_1164.png"><a href="https://www.tradingview.com/">ETH/USDT Chart by TradingView</a>
Any upward movement, though, might not last long without a big catalyst, as the market sentiment is still bearish overall.
On-chain and market indicators: The data from on-chain indicates an unsettling pattern for Ethereum.&nbsp;
Although the burn rate — the amount of <a href="https://u.today/ethereum-etfs-are-dead-bizarre-statistic">ETH</a> destroyed by transaction fees — remains constant, the ultra sound money dashboard indicates that new ETH is being issued at a rate of about 946K ETH annually. When network activity — as indicated by the quantity of ETH burned — fails to pick up this mismatch between issuance and burning, it could lead to rising inflationary pressures.&nbsp;
Ethereum's supply is growing at a rate of +0.73% annually, according to the supply growth chart. This could be problematic given the low network activity. The lack of new use cases that could spur adoption akin to the boom times seen with NFTs and DeFi in 2021 is a major factor in the current stagnation of the cryptocurrency market. Since it lessens the deflationary effect that Ethereum's burn mechanism was intended to achieve, the network's underutilization is a serious concern.

Ethereum (ETH) Inflation Reaches Catastrophic Values

U_Today

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