Ethereum falls in Crypto market

The cryptocurrency market continues to show signs of a downtrend, with a slight increase of 0.2% in its market capitalization over the past 24 hours, reaching $2.72 trillion. Despite this minor uptick, the market remains constrained within a tight range, capped at $2.75 trillion. It is worth noting that just a little over a month ago, the local resistance level was significantly higher by half a trillion dollars.

Altcoins have maintained a stable 30% market share since July 2023, except for Ethereum, which has been steadily losing its share since July 2024, dropping to 8%, marking a five-year low. In contrast, Bitcoin’s market share has been on an upward trajectory for over two years, currently standing at 60.7%. Institutional investors and governments have primarily focused their attention on Bitcoin as a strategic reserve asset, viewing altcoins, including Ethereum, as less practical alternatives.

Bitcoin experienced a downside reversal on Tuesday, briefly touching its 200-day moving average. Despite this, the leading cryptocurrency managed to gain approximately 2% from the day’s opening price, reaching $83.3K by Wednesday. Observers are advised to closely monitor the cryptocurrency market dynamics following recent comments from the Federal Reserve, as it may signal the beginning of a more extended trend.

In recent news, Standard Chartered revised its 2025 Ethereum forecast from $10,000 to $4,000, citing the increasing prominence of layer 2 (L2) solutions, such as the Base platform. The alterations made to Ethereum in recent years, while deemed necessary, have had a detrimental impact on its value.

Additionally, the US Securities and Exchange Commission is considering easing storage requirements for cryptocurrencies. Current SEC commissioner Mark Uyeda has initiated a review of a proposal aimed at relaxing the stringent storage regulations for digital assets.

Furthermore, The Block’s GMCI Meme Coin Index has plummeted by 90% from its December peak, indicating a waning interest in speculative assets of this nature. This decline signifies a cooling-off period for such volatile assets within the cryptocurrency market landscape.