Ethereum (ETH) has experienced a recent decline, falling below the $1,600 level after soaring over 12% just yesterday. This drop reflects broader bearish sentiment within the crypto market amid heightened volatility. Experts attribute this downturn to increasing uncertainty in global markets, which is impacting both traditional and digital asset values. The cryptocurrency sector’s resilience to these pressures, including Ethereum, has been tested as investors become cautious in a volatile environment. 24-hour price movements show ETH down approximately 7.55% following a strong surge of 12% the previous day. While this volatility remains concerning, experts anticipate a continued bearish outlook for ETH until factors driving growth are addressed. A key reason behind this decline is a weakening DeFi ecosystem on Ethereum. With emerging competitors like Solana offering faster transactions and lower fees, Ethereum’s dominance in DeFi appears to be fading. Additionally, the lack of significant price gains following upgrades such as Dencun has further fueled concerns about long-term competitiveness. This downward trend also carries historical weight with indicators showing ETH’s current price below its realized price. This metric, reflecting the average price at which Ethereum tokens were last traded on a blockchain, has been historically associated with bearish trends, suggesting a potential for further price decline.