Ether remains in a seven-month downtrend, dropping over 36% from its March 2024 high of $4,111 to $2,600. This decline is attributed to increased competition in the battle among top blockchain networks, like Solana, Avalanche, and Fantom. Analyst Ignas highlights that Ethereum has not emerged as the clear winner in these 'L1 wars' and notes that the value generated by Ethereum's Layer 2 solutions remains uncertain. This fragmentation of Ethereum's ecosystem is causing ETH holders to shift towards other L1 tokens, including Solana, which has seen a rise of over 552% in the past year, contrasting with Ether's 57% increase. Solana's monolithic scalability approach is seen as more appealing compared to Ethereum's complex Layer 2 landscape. Moreover, technical patterns suggest a potential correction for Ether, with a possibility of dropping to around $2,400 based on current trading metrics. The ongoing struggles of Bitcoin further complicate the cryptocurrency market's landscape.

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