Why do you think ETH was not able to make a new All time high?

[LearnBitcoin]

Yes, as the title says, I would like to know what do you guys think about it. For me, I believe the biggest reason is, ETH moved from POW to POS and that is the main reason. Accorording to chatgpt;

There are several potential reasons why Ethereum (ETH) may not have made a new all-time high despite its strong fundamentals and market positioning. Some of the key factors include:

1. Overall Market Conditions: The broader cryptocurrency market, including Bitcoin (BTC), can heavily influence Ethereum’s price. If the market as a whole is experiencing a bearish phase or high volatility, even projects with strong fundamentals like Ethereum can struggle to break new all-time highs.
2. Macro-Economic Factors: Global economic conditions, such as inflation concerns, rising interest rates, or uncertainty in traditional financial markets, can affect investor sentiment. When investors are uncertain or risk-averse, they may move away from speculative assets like cryptocurrencies, even if their long-term outlook is positive.
3. Ethereum’s Transition to Proof-of-Stake (PoS): Ethereum underwent a significant upgrade with the merge from Proof-of-Work (PoW) to Proof-of-Stake (PoS) in 2022. While the upgrade was seen as a long-term positive, it caused a period of uncertainty in terms of how the market would react. Transition phases in such a large-scale project can sometimes lead to a delay in price appreciation, especially as the ecosystem adapts to the new mechanisms.
4. Competition from Layer-1 and Layer-2 Solutions: Other blockchain platforms, such as Solana, Avalanche, and even newer Layer-2 scaling solutions on Ethereum like Optimism and Arbitrum, have gained traction. These alternatives often promise faster transaction speeds, lower fees, and scalability, which can take attention away from Ethereum as the dominant smart contract platform.
5. Regulatory Uncertainty: Cryptocurrencies, including Ethereum, face ongoing scrutiny from regulatory bodies in various countries. Any potential regulations or legal uncertainties surrounding Ethereum, smart contracts, or decentralized finance (DeFi) could lead to hesitancy among institutional investors and retail traders, which might cap its growth.
6. Ethereum Network Congestion and High Gas Fees: Despite Ethereum’s transition to PoS and its efforts to scale, the network still faces congestion issues, especially during periods of high demand. High gas fees and slow transaction times during these times can push users to other blockchains that offer faster and cheaper transactions.
7. Market Sentiment and Speculative Cycles: Cryptocurrency markets are often driven by sentiment and speculation. When the broader sentiment shifts from bullish to bearish, or when expectations are not met (for example, with delayed features or upgrades), the price can stagnate or even decline. Even with positive technical developments, Ethereum's price could be influenced by changing market sentiment.
8. The Role of Bitcoin: As the largest cryptocurrency by market cap, Bitcoin often leads the market. If Bitcoin experiences a correction or fails to make new highs, Ethereum might also be held back in its price appreciation.
9. Sell-offs and Profit-Taking: Investors who bought ETH during previous bull markets or dips may decide to take profits at certain price levels, preventing Ethereum from breaking through its previous all-time highs. These sell-offs can create resistance at certain price points.

In summary, a combination of macroeconomic conditions, regulatory uncertainty, competitive pressures, and market sentiment all play a role in why Ethereum hasn't yet broken its all-time high. However, Ethereum remains a highly important blockchain, and it still has significant potential for growth, particularly as its ecosystem continues to evolve.

 

[Actionaer]

It's just expensive coin. Payout fee is 10$ but others are almost 0$here

 

[meyzee]

It's just expensive coin. Payout fee is 10$ but others are almost 0$here

Indeed its just costly to own eth so people would rather go and hodl or trade with low fees crypto but maybe next year? Its just thay btc own the crypto space every now and then people tend to invest on the known where they could profit.

 

[LearnBitcoin]

It's just expensive coin. Payout fee is 10$ but others are almost 0$here

I think I will have to agree with you.
I hate ETH just because of the transaction fees. Basically every coin that is launched on ERC-20 chain is expensive.
Bitcoin is expensive as well, but not same as ETH. The Bitcoin transaction fees often drops.