Ethereum’s price is down due to several factors, including a decrease in the total value locked (TVL) metric and a decline in daily active users ahead of the Shanghai upgrade.
The TVL in the Ethereum ecosystem fell from $29.7 billion to $28.1 billion, accompanied by a 1.75% 24-hour decrease in TVL on March 9. Additionally, the Fed Chair’s hawkish statements following a 0.50% hike in interest rates have also affected the price, with investors sending more funds to centralized exchanges than withdrawing to decentralized exchanges.
Furthermore, a wave of Ethereum long liquidations totaling $70 million occurred recently. While some analysts see potential bullish catalysts for the asset, on-chain data paints a gloomy picture for its short-term prospects.