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Ethereum (ETH) completed the "Merge" in September 2022, marking an important milestone for this blockchain platform as it transitioned from Proof of Work (PoW) to Proof of Stake (PoS). However, this technical upgrade and the development of the Layer 2 ecosystem have not met expectations, seemingly having an unexpected impact on ETH's market performance.
In the bull market of 2023-2024, despite Bitcoin (BTC) performing strongly, Ethereum failed to reach new highs and even struggled to touch previous peaks. This performance reflects that the fundamentals of Ethereum may have undergone significant changes.
Observing the recent price trend of ETH, signs of market manipulation are quite evident. The 40% drop on February 3rd and the 100% surge within a few days on May 8th both indicate that certain market participants have a strong influence on the price of ETH. These operators may be the group that currently understands the mechanism of ETH price operation the best in the world.
It is worth noting that dominant strong capital is not always negative. In the current bull market, alternative coins supported by strong capital often show greater upward potential. In contrast, projects lacking capital support or abandoned by major capital, such as FIL, ICP, etc., often exhibit weak price trends and lack effective support.
However, the core issue facing ETH is that its fundamentals have changed. The dominant forces in the market may be adopting a strategy of "raising prices in preparation for unloading". In the first half of this year, ETH fell from a high of $4000 to around $1400, a trend that has raised concerns about its long-term prospects.
With the continuous development of blockchain technology and changes in the market environment, Ethereum is facing a critical moment of choice. Investors and developers are closely watching the next steps of the Ethereum team and the development direction of the entire ecosystem. In the future, whether Ethereum can regain growth momentum may determine its long-term position in the cryptocurrency market.