Ethereum faces pressure from ETF outflows and delayed upgrades

Ethereum is experiencing significant downward pressure, with its price falling toward the $2,300 level. This decline is driven by several factors, including massive outflows from US spot ETH ETFs, which saw a net loss of $1.08 billion in October. BlackRock’s ETH fund alone lost $477 million within a single week.

Technical challenges have further complicated the outlook. The planned 'Glamsterdam' upgrade, originally scheduled for October 26, was halted due to security risks identified in a key proposal, leaving a new date unconfirmed. Additionally, the project X100 suffered a security breach resulting in a loss of 4.85 million USDT.

On-chain data from CryptoQuant indicates a cooling of network activity, noted by a decline in the 30-day moving average of failed transactions. While this could suggest more efficient operations, analysts suggest it may also reflect a reduction in speculative activity as investors potentially shift capital toward the booming artificial intelligence sector. The Coinbase Premium Index has also reached its lowest level since June, signaling weak demand in the US market.