“Ethereum Struggles to Break $3,400 Amid Weak Demand: DMK AI Analysis”

📰 DMK AI Summary

Ether (ETH) is facing challenges breaking through the $3,400 mark due to weak demand from spot Ethereum ETFs, soft derivatives data, and concerns about global economic growth. Although there are signs of steady on-chain activity, ETH fell by 11% over the past week, prompting debates among traders about its ability to reclaim the $3,900 level. With the Nasdaq index correcting by 4% and ongoing worries about artificial intelligence sector valuations, market sentiment towards ETH remains cautious.

Market anxiety has increased following a downturn in US consumer sentiment expectations, coupled with the prolonged US government shutdown, impacting Ether’s investor confidence. The total value locked on the Ethereum network dropped to $74 billion, the lowest since July, following a $120 million exploit on a leading DeFi platform. Despite technical upgrades like the upcoming Fusaka update in early December, concerns about a slower global economy and weak demand for ETH spot ETFs are limiting the short-term breakout potential for ETH price.

💬 DMK Insight

The challenges facing Ethereum, such as weak demand, economic uncertainties, and a drop in on-chain activity, highlight the importance of market sentiment and external factors in determining crypto prices. Traders and investors need to closely monitor developments in global markets and upcoming network upgrades to navigate the current volatility in the cryptocurrency space effectively.

🧾 Editorial Note

This article was automatically summarized and analyzed by DMK News Bot’s AI System, using publicly available data and verified financial updates.