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Ethereum Drops 4% in the Last 24 Hours: What Could Drive the Next Move?
- Ethereum has dropped 4% in the last 24 hours, with potential drivers for its next move being network upgrades, institutional trends, and technical outlook.
- Network upgrades such as the Pectra upgrade and the upcoming Fusaka hard fork targeting Layer-1 scaling are expected to play a role in Ethereum's market share recovery.
- Ethereum's Proof-of-Stake mechanism provides a support system as staking yields increase with ETH price declines.
- Institutional trends, including ETH ETF inflows and the potential approval of staking-enabled ETFs, could affect ETH supply and demand.
- Concerns remain about whale holdings controlling a significant portion of ETH supply, posing volatility risks.
- Global liquidity trends, influenced by U.S. monetary policy shifts, may impact Ethereum's price direction.
- Technically, Ethereum is trading below key moving averages, indicating near-term weakness, but oversold conditions and support levels suggest potential bullish momentum.
- Rising transaction fees in May point to increased network demand and usage.
- Ethereum's short-term dip reflects macro uncertainty and internal network changes, with potential for renewed strength as upgrades and ETF developments progress.
- Volatility is expected to persist due to whale concentration and external factors like Fed policy.
- Overall, Ethereum's next move will be influenced by a complex interplay of technical, institutional, and macroeconomic factors.
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