The downward trajectory of ETH was both expected and unexpected at the same time. While many industry experts believed that the token would take off after the conclusion of the merge with the Beacon network shifting the consensus mechanism to PoS, other people were less optimistic with some analysts predicting the worst-case scenario with ETH hitting $400. Well, the latter did not happen, but the former did not happen either.
Ethereum is in a very worrying position
The merge is an attempt to make the network friendlier to institutional investors concerned with things like environmental impact, energy consumption, and sustainability. However, it did not bring any new utility or performance boosts. While the switch to the proof-of-stake model is a questionable decision according to some users, the network needed to continue growing. It did not relieve the tension within the ETH community.
Ethereum is also facing strong competition from Cardano and Algorand. Even Cosmos recently announced in their new whitepaper that the multi-blockchain network will be switching to a new direction to focus on interoperability and security while providing more options for scalability. Cardano is attempting to do the same with the Vasil hard fork that was implemented just a week ago.
Also read:Algorand is making huge moves by partnering with large corporations like Disney, Nike, and more. The network is also improving each month with the latest upgrade increasing the throughput to 6000 TPS which is 5 times more than it was before. In general, this network is the biggest competitor of Ethereum.
ETH is trading below $1400 for over a week
It has been 19 days since ETH hovered above $1400 which is a bad sign for the whole community of ETH holders, but it is especially bad considering the strong push from ETH’s competitors. While ADA did not see any changes to the price and continues its sideways movement, ALGO managed to climb 28% since September 15, in part, thanks to the latest upgrade and news about corporations like Disney and FIFA are about to deploy their Algorand-based projects.
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