TLDR:
- Ethereum trading at $2,500 mark shows weakness in Q4 2024
- Activity metrics reveal Solana processing 10x more daily addresses than Ethereum
- Bitcoin ETFs pulling ahead with $66B AUM versus Ethereum’s $7B
- Layer-2 networks raise questions about Ethereum’s value capture model
- Market technicals point to potential test of $2,300 support level
The final quarter of 2024 presents mounting pressure for Ethereum holders as the cryptocurrency trades near $2,500, down 5% over the past week. Market data from October 25 reveals ongoing challenges for the blockchain network that pioneered smart contracts.
Price action tells only part of the story. Trading volumes hover around $15 billion daily, suggesting active market participation despite the recent pullback from attempts to breach $2,800. The price has retreated to test support levels that have held since August 2024.
Looking under the hood, network activity metrics paint a telling picture. Daily active addresses on Ethereum number approximately 377,000, while competitor Solana processes around 4 million. This stark contrast in network usage has caught the attention of market participants and analysts alike.
The institutional investment landscape adds another layer to the narrative. US-based spot Bitcoin ETFs have gathered an impressive $66 billion in assets under management. In comparison, Ethereum ETFs hold roughly $7 billion, pointing to clear institutional preferences in the digital asset space.

Ethereum’s role in decentralized finance remains substantial, with $46.7 billion total value locked (TVL) in its ecosystem. This represents more than half of the entire DeFi market’s $87 billion. However, questions persist about value capture as Layer-2 solutions continue to expand.
Technical traders note the formation of bearish patterns on multiple timeframes. Weekly charts show prices testing an ascending parallel channel that has guided movement since June 2022. The $2,450 level serves as a critical support zone, having acted as both resistance and support over the past three years.
Market sentiment indicators reflect growing uncertainty. Social media discussions highlight concerns about Ethereum’s relationship with Layer-2 networks, particularly regarding value distribution between the main chain and its scaling solutions. Industry figures point out that Layer-2s may not contribute proportionally to Ethereum’s value proposition.
The ETHBTC trading pair has retreated to levels not seen since March 2016, prompting debates about relative value and investment strategies. Some traders question the merit of holding ETH given its higher volatility compared to Bitcoin, particularly as the ratio continues to decline.
Daily chart analysis reveals weakening momentum. Recent attempts to rally have failed to reach previous resistance levels, while support tests become more frequent. The Relative Strength Index dipping below 50 marks a departure from patterns seen in previous bullish cycles.
Layer-1 competition intensifies as networks like Tron report 2.2 million active addresses in 24-hour periods. These metrics challenge Ethereum’s position as the dominant smart contract platform, even as it maintains leadership in total value locked.
Infrastructure development continues with Kraken announcing Ink, their new Layer-2 solution. This follows similar moves by other major players like Uniswap, though questions remain about how these developments benefit network validators and token holders.
Short-term price action suggests immediate support at $2,300 if current levels fail to hold. The $2,800 level has repeatedly rejected upward movements, establishing a clear resistance zone that buyers have yet to overcome.
Technical indicators present mixed signals. While the Moving Average Convergence/Divergence shows some positive momentum, other metrics point to potential weakness. The formation of bearish candlestick patterns on higher timeframes has caught the attention of chart analysts.
Trading volumes remain robust despite price declines, indicating active market participation rather than panic selling. This suggests an orderly repricing rather than capitulation, though sentiment continues to lean bearish.
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