On October 30, Ethereum’s price surged to $2,700, marking its highest point in ten days. But a strong pullback on October 31 took it down to $2,550. However, the bear days for this altcoin may be nearing their end, as a technical analyst suggests Ethereum's final drop is behind us and greener days are ahead. The charts are hinting at an incoming rally up to $2,800. 

Independent trader Poseidon believes Ethereum has already weathered its "final dip" over the past weekend. He explained that ETH regained its 200-day EMA on the 8-hour chart, and the weekend’s drop was merely a "bear trap/fake-out."

What's Weighing Down Ethereum's Price?

A rather lukewarm interest from both retail and institutional investors is adding pressure on Ether. On October 30, the new ETH ETF saw a modest inflow of $4.4 million, a fraction compared to the $893 million inflow into Bitcoin ETFs, just about 0.49% of its larger rival.

Joe Consorti, a Bitcoin advocate and creator at Theya Inc., pointed out that Ethereum ETFs in the U.S. haven’t garnered much investor enthusiasm. In stark contrast, Bitcoin-based funds attracted $3.3 billion in a single week!

As for what it’ll take to see Ether hit $2,800, or maybe even retake $3,000, the answer likely lies in a combo of reduced transaction fees, wider institutional acceptance, and juicier staking incentives for ETH holders.

The ongoing debate centers around balancing the demand for low-cost transactions with ensuring attractive staking rewards for Ethereum. Currently, Ethereum’s transaction fees remain static. According to StakingRewards, ETH staking rewards sit at 3.4%, compared to Solana’s 6.5% and Tron’s 4.5%.

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Source: StakingRewards

Ethereum’s path to $3,000 leans heavily on institutional uptake, which is partly blocked by the SEC’s stance, halting spot Ethereum ETF applications that could rely on staking strategies.

Additionally, Ethereum now faces issues with rising supply and a bit of “layer-2 over-optimization,” which, while useful for scaling, could compromise security sustainability. So, ETH’s stable growth may require significant adjustments in network structure.

Could the Reddit Selloff Put Pressure on Ethereum?

One of the more unexpected players in Ethereum's price woes might just be Reddit, which recently decided to part ways with most of its crypto holdings in Q3. According to an SEC filing, Reddit sold off its stash of Bitcoin and Ether, assets that were once kept "for treasury purposes."

This crypto sell-off marks a shift for Reddit, distancing itself from a digital asset market it once viewed as promising. Offloading around $6.9 million in cryptocurrency, including Ethereum and Bitcoin, suggests Reddit is adopting a more conservative balance sheet strategy.

Interestingly, the sale wrapped up in Q3, meaning Reddit completely missed out on the infamous “Uptober” — that time of year when crypto tends to rally, and Bitcoin reached its monthly high. 

This cautious move hints at a waning interest in crypto investments, possibly signaling risks or volatility to the broader market. Such a step by a major player like Reddit undoubtedly piles on more pressure for Ethereum, which is already grappling with its own market struggles. Reddit’s retreat may just be one more weight holding back ETH’s potential growth.

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