Ethereum (ETH) price has been underperforming compared to the wider crypto market, declining 5.2% between September 3rd and 4th after a strong rejection at the $2,550 resistance. Traders are concerned that Ether may continue to underperform even if the broader crypto bull market resumes, as incentives for fixed income in the United States are expected to decrease.
The lackluster performance of Ether is attributed to a combination of factors, including lower network fees, unappealing staking rewards, and weak demand for its recently launched spot exchange-traded fund (ETF) products. From a macroeconomic perspective, uncertainty surrounding the outcome of the US Federal Reserve's likely upcoming decision to cut interest rates is also putting pressure on Ether's price.
Traders are particularly concerned about the tech sector, especially after Nvidia shares lost a record $279 billion in market capitalization on September 3rd. The chipmaker experienced a 14% decline over three days following two cautious research reports on the growth of the artificial intelligence sector. Additionally, Nvidia was subpoenaed as part of a US Department of Justice antitrust investigation, further contributing to the uncertainty in the tech market.
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