Ethereum (ETH) Why Can't It Rise? JPMorgan Analysts Explained, Warned for Aftermath!

The largest altcoin, Ethereum (ETH), continues to lag behind Bitcoin (BTC) with its weak performance.

While ETH fails to meet investors' expectations, JPMorgan warned that Ethereum may continue its weak performance.

According to The Block's report, JPMorgan analysts said in their latest research reports that Ethereum is facing constant pressure from its competitors.

Analysts also added that Ethereum's market share has dropped to a four-year low as competition intensifies from blockchain networks such as Solana (SOL) and layer-2 (L2) networks.

JPMorgan analysts led by Nikolaos Panigirtzoglou said:

"Ethereum not only lagged behind Bitcoin, but also the performance of other altcoins."

ETH's share in the total crypto market value has now fallen to a four-year low, indicating increasing pressure from competitors.

Analysts stating that there are two main reasons for this pressure said that they are "increased competition from blockchains such as Solana and Layer 2 networks offering lower fees and greater scalability, and the lack of a strong narrative for Ethereum to rise against Bitcoin's positioning as a store of value."

Analysts have pointed out that major dApps such as Uniswap, dYdX, and Hyperliquid have also transitioned to their own chains, raising concerns about Ethereum's long-term fee revenue and sustainability, and warned that competition and pressure on ETH from its competitors will continue.