Ethereum's price has dropped by 2.28% today, reflecting broader market trends as the entire crypto market shed $180 billion in value. This decline comes amid a general downturn in major cryptocurrencies, with Bitcoin also retreating from its recent highs. Ethereum's price fell to a low of $3,291.95, influenced by profit-taking activities following the post-U.S. election rally. The market's overbought conditions, as noted by QCP Capital, have led to a pause, with excessive leverage being a contributing factor. This has resulted in significant liquidations across the board, further pressuring prices downward.
Despite the price drop, Ethereum has seen a surge in blob usage, indicating increased adoption of layer-2 scaling solutions. The Dencun upgrade has facilitated this by allowing efficient transaction bundling, leading to a spike in blob fees and the burning of over 166 ETH in the past week. Matthew Siegel from VanEck highlighted that transactions for Ethereum and its layer-2 solutions are reaching all-time highs, suggesting potential outperformance ahead. However, the immediate market sentiment remains cautious as investors await key macroeconomic indicators, including the FOMC minutes and PCE data, which could further influence market dynamics.