Why Is Ethereum (ETH) Struggling Right Now?

Ethereum (ETH), the second-largest cryptocurrency by market cap, has seen a noticeable dip in price lately. While crypto markets are always volatile, several specific factors are contributing to ETH’s recent underperformance.

📉 1. Macroeconomic Pressures

Global economic uncertainty is affecting riskier assets like crypto. Concerns over inflation, interest rates, and potential recessions are pushing investors toward more stable assets. This flight to safety tends to put downward pressure on cryptocurrencies like Ethereum.

💥 2. Massive Long Liquidations

A surge in leveraged trading has led to waves of long liquidations. When Ethereum's price drops, those betting on a rise with borrowed funds are forced to sell, creating a cascading effect that accelerates the decline.

🪙 3. Rising Ethereum Supply

Ethereum’s supply had briefly turned deflationary after the Merge and EIP-1559, but it has since shifted back toward inflation. An increase in supply without corresponding demand tends to soften the price of ETH in the market.

🧠 4. Underperformance Compared to Bitcoin

Bitcoin has been outperforming ETH, partly thanks to increased institutional interest and the successful launch of Bitcoin ETFs. In contrast, Ethereum has seen less hype and slower growth in investment activity, causing the ETH/BTC ratio to dip.

🔧 5. Technical Challenges and Network Usage

Ethereum is still facing issues like high gas fees and reduced on-chain activity. Slower innovation, delays in scaling solutions, and reduced DApp usage have contributed to weaker fundamentals in the short term.

🇪🇺 Is Ethereum Allowed in the EU?

Yes—Ethereum is fully legal and allowed in the European Union. Under the EU's MiCA (Markets in Crypto-Assets) regulation, Ethereum and other digital assets can be used and traded, provided the platforms offering them are compliant. This regulatory clarity gives users in Europe confidence to invest and spend ETH safely.

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If you’re holding ETH and want to use it in daily life, Spendo.com makes it easy. With Spendo, you can:

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• ⚡ Enjoy real-time crypto-to-fiat conversion

Whether you're buying coffee, booking travel, or shopping online, Spendo lets you use your Ethereum like traditional money—no need to wait for retailers to accept crypto directly.

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