Ethereum’s price encountered selling pressure on December 15th, failing to overcome the resistance level of $2,320. This correction is linked to negative statements by legal regulators and a hack event that affected the Web3 ecosystem. Additionally, a decrease in activities on the Ethereum network and criticisms from a former Ethereum developer may have triggered the selling pressure.
Ethereum’s price remained under the influence of plans by asset managers like BlackRock to launch an Ethereum ETF product. The momentum increased with Bloomberg ETF analysts predicting a 90% chance of a Bitcoin ETF application being approved by January.
However, the regulatory climate expectations changed on December 15th after SEC Chairman Gery Gensler stated that current laws were being applied to the crypto securities market. Furthermore, the Ledger attack that occurred on the morning of December 14th also negatively impacted Ethereum’s price.
The Ethereum network continues to face its own challenges, creating opportunities for rival blockchain networks like Solana and Avalanche. For instance, the average transaction fee within the Ethereum ecosystem, which is $9.90, is impractical for most transactions, pushing users towards Layer-2 solutions.
The total value locked (TVL) within the Ethereum ecosystem has decreased by 5% since November 30th, falling to 12.26 million ETH. In contrast, Solana’s TVL increased by 14% in SOL terms during the same period. While Ethereum’s decentralized application (DApp) volumes have been unable to surpass the $1.8 billion threshold for over a month, the Solana network exhibited a healthy increase, reaching up to $700 million daily.