Why do you think ETH was not able to make a new All time high?

[God Of Thunder]

Yes, as the title says, I would like to know what you guys think about it. I believe the main reason is that ETH moved from POW to POS. I am not investing a single cent in ETH anymore. But believe me, A lot of people still believe in ETH and want to invest their money. I asked ChatGPT the same question, and the answer was this;

There are several potential reasons why Ethereum (ETH) may not have made a new all-time high despite its strong fundamentals and market positioning. Some of the key factors include:

1. **Overall Market Conditions**: The broader cryptocurrency market, including Bitcoin (BTC), can heavily influence Ethereum’s price. If the market as a whole is experiencing a bearish phase or high volatility, even projects with strong fundamentals like Ethereum can struggle to break new all-time highs.

2. **Macro-Economic Factors**: Global economic conditions, such as inflation concerns, rising interest rates, or uncertainty in traditional financial markets, can affect investor sentiment. When investors are uncertain or risk-averse, they may move away from speculative assets like cryptocurrencies, even if their long-term outlook is positive.

3. **Ethereum’s Transition to Proof-of-Stake (PoS)**: Ethereum underwent a significant upgrade with the merge from Proof-of-Work (PoW) to Proof-of-Stake (PoS) in 2022. While the upgrade was seen as a long-term positive, it caused a period of uncertainty in terms of how the market would react. Transition phases in such a large-scale project can sometimes lead to a delay in price appreciation, especially as the ecosystem adapts to the new mechanisms.

4. **Competition from Layer-1 and Layer-2 Solutions**: Other blockchain platforms, such as Solana, Avalanche, and even newer Layer-2 scaling solutions on Ethereum like Optimism and Arbitrum, have gained traction. These alternatives often promise faster transaction speeds, lower fees, and scalability, which can take attention away from Ethereum as the dominant smart contract platform.

5. **Regulatory Uncertainty**: Cryptocurrencies, including Ethereum, face ongoing scrutiny from regulatory bodies in various countries. Any potential regulations or legal uncertainties surrounding Ethereum, smart contracts, or decentralized finance (DeFi) could lead to hesitancy among institutional investors and retail traders, which might cap its growth.

6. **Ethereum Network Congestion and High Gas Fees**: Despite Ethereum’s transition to PoS and its efforts to scale, the network still faces congestion issues, especially during periods of high demand. High gas fees and slow transaction times during these times can push users to other blockchains that offer faster and cheaper transactions.

7. **Market Sentiment and Speculative Cycles**: Cryptocurrency markets are often driven by sentiment and speculation. When the broader sentiment shifts from bullish to bearish, or when expectations are not met (for example, with delayed features or upgrades), the price can stagnate or even decline. Even with positive technical developments, Ethereum's price could be influenced by changing market sentiment.

8. **The Role of Bitcoin**: As the largest cryptocurrency by market cap, Bitcoin often leads the market. If Bitcoin experiences a correction or fails to make new highs, Ethereum might also be held back in its price appreciation.

9. **Sell-offs and Profit-Taking**: Investors who bought ETH during previous bull markets or dips may decide to take profits at certain price levels, preventing Ethereum from breaking through its previous all-time highs. These sell-offs can create resistance at certain price points.

In summary, a combination of macroeconomic conditions, regulatory uncertainty, competitive pressures, and market sentiment all play a role in why Ethereum hasn't yet broken its all-time high. However, Ethereum remains a highly important blockchain, and it still has significant potential for growth, particularly as its ecosystem continues to evolve.

[NotATether]

I think it has leas to do with proof of stake and more to do with the fact that it was a direct competitor to the Trump coins that were launched a few months ago so they really suffered as a result.

[Kemarit]

It's competition, SOL might have eating their market share, and so investors are moving to them, and in other crypto market like Bitcoin and meme coins. But to be fair, the whole altcoin market is also suffering and up to this point, there are no sign of a bullish run or sentiments of the market becoming positive for them.

And if you look at the historical logs, it's also something to do with their transitioning to POS model. They are down like -70% when they move in September 2022.

[Crwth]

I don’t think it’s because of the proof-of-stake Protocol that they did; it’s just that there was a lot of competition that made it harder for ETH to grow. A lot of people have already experienced the struggle of having that high gas fee, and it might have led other people to just go with another chain.

[Outhue]

If Proof of work on Bitcoin Network can add value to the coin itself why not Ethereum? This is the answer I have for those saying that it has nothing to do with PoW, you are damn wrong, as a matter of fact it has everything to do with PoW Algorithm.

Do you guys not remember that Ethereum was the most profitable coin to mine for the past years? Even Bitcoin miners around the world said so, it was easier to mine ETH and convert to BTC for long term hold.

I remember mining ETH with 25 GPUs on Nicehash pool and getting paid in BTC, there are many mining warehouse in China and other part of the world that do this, securing they network and everything was fine.

Love it or hate it, Proof of Work was why ETH stands alone after BTC, now if is no more, something similar will happen to BTC if possible that it can change to Proof is stake, but I guess that's impossible for BTC.

To me ETH is now a centralized project compare to what it used to be in the past.

[Jating]

I don’t think it’s because of the proof-of-stake Protocol that they did; it’s just that there was a lot of competition that made it harder for ETH to grow. A lot of people have already experienced the struggle of having that high gas fee, and it might have led other people to just go with another chain.

They've given so much control when they move to POS, and makes Ethereum more centralized that's why some investors decided not to go with them anymore. And it's supposed to solved that problem of gas prices, but it didn't. With that, there could be investors that are disappointment with their transition that it's obvious that it didn't gain any traction. And we might say that after that, and with a lot of supposedly more development in the pipeline, it just make Ethereum worst.

[MrSpasybo]

Yes, as the title says, I would like to know what you guys think about it. I believe the main reason is that ETH moved from POW to POS. I am not investing a single cent in ETH anymore. But believe me, A lot of people still believe in ETH and want to invest their money. I asked ChatGPT the same question, and the answer was this...
~

Well, first off, let's talk about the reasons ChatGPT gave. I only think reason number 4, related to Layers 1 & 2, and reason number 9, related to speculation, are plausible. The other reasons aren't convincing, even though I'd like to consider them.

I've always seen POS as a valuable upgrade for Ethereum and the entire crypto market, reaffirming the inevitable trend of choosing consensus protocols for major ecosystems in this market. The impact from Layer-2 could be a direct cause we can easily see: users go to Layer-2 instead of Layer-1, causing a significant drop in Ethereum network transactions, thereby reducing gas fees and the amount of ETH burned, so the selling pressure doesn't decrease over time...

However, this reason isn't very realistic. I've never believed that the important driver for ETH price increase is the number of transactions or the amount of ETH burned, but rather investor expectations and whale price pumping strategies. In many reports, whales are actively accumulating ETH, which might not be a coincidence or a mistake. I believe whales still want to profit from ETH in this cycle, and they'll push the ETH price to a new ATH at the appropriate time ^^

[philipma1957]

Yes, as the title says, I would like to know what you guys think about it. I believe the main reason is that ETH moved from POW to POS. I am not investing a single cent in ETH anymore. But believe me, A lot of people still believe in ETH and want to invest their money. I asked ChatGPT the same question, and the answer was this;

There are several potential reasons why Ethereum (ETH) may not have made a new all-time high despite its strong fundamentals and market positioning. Some of the key factors include:

1. **Overall Market Conditions**: The broader cryptocurrency market, including Bitcoin (BTC), can heavily influence Ethereum’s price. If the market as a whole is experiencing a bearish phase or high volatility, even projects with strong fundamentals like Ethereum can struggle to break new all-time highs.

2. **Macro-Economic Factors**: Global economic conditions, such as inflation concerns, rising interest rates, or uncertainty in traditional financial markets, can affect investor sentiment. When investors are uncertain or risk-averse, they may move away from speculative assets like cryptocurrencies, even if their long-term outlook is positive.

3. **Ethereum’s Transition to Proof-of-Stake (PoS)**: Ethereum underwent a significant upgrade with the merge from Proof-of-Work (PoW) to Proof-of-Stake (PoS) in 2022. While the upgrade was seen as a long-term positive, it caused a period of uncertainty in terms of how the market would react. Transition phases in such a large-scale project can sometimes lead to a delay in price appreciation, especially as the ecosystem adapts to the new mechanisms.

4. **Competition from Layer-1 and Layer-2 Solutions**: Other blockchain platforms, such as Solana, Avalanche, and even newer Layer-2 scaling solutions on Ethereum like Optimism and Arbitrum, have gained traction. These alternatives often promise faster transaction speeds, lower fees, and scalability, which can take attention away from Ethereum as the dominant smart contract platform.

5. **Regulatory Uncertainty**: Cryptocurrencies, including Ethereum, face ongoing scrutiny from regulatory bodies in various countries. Any potential regulations or legal uncertainties surrounding Ethereum, smart contracts, or decentralized finance (DeFi) could lead to hesitancy among institutional investors and retail traders, which might cap its growth.

6. **Ethereum Network Congestion and High Gas Fees**: Despite Ethereum’s transition to PoS and its efforts to scale, the network still faces congestion issues, especially during periods of high demand. High gas fees and slow transaction times during these times can push users to other blockchains that offer faster and cheaper transactions.

7. **Market Sentiment and Speculative Cycles**: Cryptocurrency markets are often driven by sentiment and speculation. When the broader sentiment shifts from bullish to bearish, or when expectations are not met (for example, with delayed features or upgrades), the price can stagnate or even decline. Even with positive technical developments, Ethereum's price could be influenced by changing market sentiment.

8. **The Role of Bitcoin**: As the largest cryptocurrency by market cap, Bitcoin often leads the market. If Bitcoin experiences a correction or fails to make new highs, Ethereum might also be held back in its price appreciation.

9. **Sell-offs and Profit-Taking**: Investors who bought ETH during previous bull markets or dips may decide to take profits at certain price levels, preventing Ethereum from breaking through its previous all-time highs. These sell-offs can create resistance at certain price points.

In summary, a combination of macroeconomic conditions, regulatory uncertainty, competitive pressures, and market sentiment all play a role in why Ethereum hasn't yet broken its all-time high. However, Ethereum remains a highly important blockchain, and it still has significant potential for growth, particularly as its ecosystem continues to evolve.

pos switch is killing them.  now that musky trumpeter and Putin have agreed to melt the icecaps and fight over Iceland and Canada Mr v's switch looks like a brutal mistake.

[Azharul]

I don’t think it’s because of the proof-of-stake Protocol that they did; it’s just that there was a lot of competition that made it harder for ETH to grow. A lot of people have already experienced the struggle of having that high gas fee, and it might have led other people to just go with another chain.

They've given so much control when they move to POS, and makes Ethereum more centralized that's why some investors decided not to go with them anymore. And it's supposed to solved that problem of gas prices, but it didn't. With that, there could be investors that are disappointment with their transition that it's obvious that it didn't gain any traction. And we might say that after that, and with a lot of supposedly more development in the pipeline, it just make Ethereum worst.

Obviously, I think that you could express a best opinion in your comment. Ethereum is the second level profitable crypto in cryptocurrency world. If we follow in cryptocurrency market, we can see that bitcoin price is also down in cryptocurrency market. We know that when bitcoin price will down, then ethereum and other cryptocurrency also be down. If we follow in cryptocurrency market we can see that ethereum price is $1881. But i think that within a short time ethereum price reach $2000. I also believe that in this year ethereum price reach $2500, which will be best profitable source for us.

[philipma1957]

I don’t think it’s because of the proof-of-stake Protocol that they did; it’s just that there was a lot of competition that made it harder for ETH to grow. A lot of people have already experienced the struggle of having that high gas fee, and it might have led other people to just go with another chain.

They've given so much control when they move to POS, and makes Ethereum more centralized that's why some investors decided not to go with them anymore. And it's supposed to solved that problem of gas prices, but it didn't. With that, there could be investors that are disappointment with their transition that it's obvious that it didn't gain any traction. And we might say that after that, and with a lot of supposedly more development in the pipeline, it just make Ethereum worst.

Obviously, I think that you could express a best opinion in your comment. Ethereum is the second level profitable crypto in cryptocurrency world. If we follow in cryptocurrency market, we can see that bitcoin price is also down in cryptocurrency market. We know that when bitcoin price will down, then ethereum and other cryptocurrency also be down. If we follow in cryptocurrency market we can see that ethereum price is $1881. But i think that within a short time ethereum price reach $2000. I also believe that in this year ethereum price reach $2500, which will be best profitable source for us.

yeah you hope for that but it is more likely it never really goes up much at all and has turned into a 4-7% bond which really will lock in value of coin at lower prices not higher

[Jating]

I don’t think it’s because of the proof-of-stake Protocol that they did; it’s just that there was a lot of competition that made it harder for ETH to grow. A lot of people have already experienced the struggle of having that high gas fee, and it might have led other people to just go with another chain.

They've given so much control when they move to POS, and makes Ethereum more centralized that's why some investors decided not to go with them anymore. And it's supposed to solved that problem of gas prices, but it didn't. With that, there could be investors that are disappointment with their transition that it's obvious that it didn't gain any traction. And we might say that after that, and with a lot of supposedly more development in the pipeline, it just make Ethereum worst.

Obviously, I think that you could express a best opinion in your comment. Ethereum is the second level profitable crypto in cryptocurrency world. If we follow in cryptocurrency market, we can see that bitcoin price is also down in cryptocurrency market. We know that when bitcoin price will down, then ethereum and other cryptocurrency also be down. If we follow in cryptocurrency market we can see that ethereum price is $1881. But i think that within a short time ethereum price reach $2000. I also believe that in this year ethereum price reach $2500, which will be best profitable source for us.

I think you correlate Ethereum price to Bitcoin, which is not the case in this cycle. We have seen the Bitcoin has a new all time high, while Ethereum is -60% down still from it's all time high from last cycle which is $4800. So it will take to double the price obviously to just even get closer to it's all time high. But if we look at it's movement, it might be very hard to accomplished it. Not saying that it can't be done, but the chances are getting small specially that we have entered another quarter.

[ghost77]

I don’t think it’s because of the proof-of-stake Protocol that they did; it’s just that there was a lot of competition that made it harder for ETH to grow. A lot of people have already experienced the struggle of having that high gas fee, and it might have led other people to just go with another chain.

They've given so much control when they move to POS, and makes Ethereum more centralized that's why some investors decided not to go with them anymore. And it's supposed to solved that problem of gas prices, but it didn't. With that, there could be investors that are disappointment with their transition that it's obvious that it didn't gain any traction. And we might say that after that, and with a lot of supposedly more development in the pipeline, it just make Ethereum worst.

Obviously, I think that you could express a best opinion in your comment. Ethereum is the second level profitable crypto in cryptocurrency world. If we follow in cryptocurrency market, we can see that bitcoin price is also down in cryptocurrency market. We know that when bitcoin price will down, then ethereum and other cryptocurrency also be down. If we follow in cryptocurrency market we can see that ethereum price is $1881. But i think that within a short time ethereum price reach $2000. I also believe that in this year ethereum price reach $2500, which will be best profitable source for us.

I think you correlate Ethereum price to Bitcoin, which is not the case in this cycle. We have seen the Bitcoin has a new all time high, while Ethereum is -60% down still from it's all time high from last cycle which is $4800. So it will take to double the price obviously to just even get closer to it's all time high. But if we look at it's movement, it might be very hard to accomplished it. Not saying that it can't be done, but the chances are getting small specially that we have entered another quarter.

In this cycle, it seems that ethereum is still struggling and cannot follow the movement of bitcoin prices that have reached ATH in the crypto market. However, many investors still believe that the price of ethereum will rise, let's just wait

[Tribalchief]

From the quoted AI's suggestions above, I will agree with 3,6,7 and 9. I think the whole narrative of transitioning from PoS to PoW, and its high centralized authority is probably why I don't like it as well. Etheruem failing to meet a new ATH has nothing to do with Bitcoin dominance, it's level of centralization is just too high. And come to think of it, high gas fee is also a problem as it's level of scalability doesn't worth it.

I tried checking for Eth price movement compared to BNB over the past five years, and to my greatest surprise, BNB has done far better.
Here is a link to it https://portfolioslab.com/tools/stock-comparison/ETH-USD/BNB-USD

[philipma1957]

From the quoted AI's suggestions above, I will agree with 3,6,7 and 9. I think the whole narrative of transitioning from PoS to PoW, and its high centralized authority is probably why I don't like it as well. Etheruem failing to meet a new ATH has nothing to do with Bitcoin dominance, it's level of centralization is just too high. And come to think of it, high gas fee is also a problem as it's level of scalability doesn't worth it.

I tried checking for Eth price movement compared to BNB over the past five years, and to my greatest surprise, BNB has done far better.
Here is a link to it https://portfolioslab.com/tools/stock-comparison/ETH-USD/BNB-USD

the easy safe staking of solana really will hurt eth bigly.

I posted how my trezor allows easy safe staking at 7% for solana.

eth will be hard pressed to compete with trezors solana staking

[God Of Thunder]

pos switch is killing them.  now that musky trumpeter and Putin have agreed to melt the icecaps and fight over Iceland and Canada Mr v's switch looks like a brutal mistake.

As you can see, many people do not agree with this opinion. But personally, I do agree with it. If no one gets any profit from ETH but the team, then many people are likely to abandon it. I stopped investing in ETH for the last two years already, and I do not plan to invest a single dollar in the near future if nothing changes.

Also, the number of competitors has increased. Now, people are looking for better ROI. For steady ROI, they have Bitcoin already.