Ethereum, the second largest cryptocurrency by market capitalization, has been struggling to regain its footing after a recent price drop. While many investors and analysts are hopeful for a recovery, some are concerned about the lack of fundamental blockchain activity that could hinder a potential price increase.

According to analysts interviewed by Cointelegraph, Ethereum’s price may continue to struggle until there is a significant increase in blockchain activity. This is because the value of a cryptocurrency is often tied to its utility and usage, and without a strong demand for Ethereum’s blockchain services, its price may remain stagnant.

One of the main factors contributing to the lack of blockchain activity on Ethereum is the rise of competing platforms. As more and more blockchain projects emerge, they are often built on their own unique platforms, rather than using Ethereum’s network. This means less demand for Ethereum’s services and a potential decrease in its value.

Additionally, the recent surge in popularity of decentralized finance (DeFi) has also had an impact on Ethereum’s blockchain activity. Many DeFi projects are built on Ethereum, but they often require a large amount of gas fees to be paid in order to use the platform. This has led to a decrease in transactions on the Ethereum network, as users are deterred by the high fees.

However, not all hope is lost for Ethereum. Some analysts believe that the upcoming Ethereum 2.0 upgrade, which promises to improve scalability and reduce gas fees, could bring about a resurgence in blockchain activity and ultimately lead to a price recovery.

In the meantime, investors and traders should keep a close eye on Ethereum’s blockchain activity and any developments related to the Ethereum 2.0 upgrade. These factors could provide valuable insights into the future price movements of this popular cryptocurrency. As always, it is important to do thorough research and carefully consider all factors before making any investment decisions.