Ethereum falls for reasons both shared with Bitcoin and unique to its own network. Here are the six we see most.

It fell with Bitcoin

Ether usually has a higher beta than Bitcoin, meaning it falls further when the market falls. A 4 percent Bitcoin drop can easily be a 6 or 7 percent ETH drop.

Bitcoin dominance is rising

When money moves from altcoins into Bitcoin, ETH lags even if nothing is wrong with Ethereum.

ETF outflows

Ether funds publish daily flows. Consecutive outflow days weigh on price.

Staking exits

When many stakers queue to withdraw, markets worry that the withdrawn ETH will be sold.

Layer 2 activity shifting

If fee revenue on the main chain falls because users stay on layer 2 networks, ETH demand can soften.

Liquidations

ETH futures are heavily traded. A fast drop through a liquidation cluster adds forced selling.

How to tell which cause applies

Start with the ETH/BTC ratio. If it fell, the cause is specific to Ether, so look at fund flows and staking queues. If it was flat, Ether simply followed Bitcoin and the question is really about the whole market. Then compare the size of the move with the liquidation total: a large number means forced selling did the work.

What would change the picture

Consecutive days of fund inflows, a falling exit queue for stakers and a rising share of layer-2 fees paid back to the main chain would each reduce selling pressure.

Latest Ethereum stories behind the price move

Questions readers ask

Is ETH dropping because of a hack?

Only if a major Ethereum application was exploited. Check Web3 Watch.