Why Is The Price Not Rising? An Overview Of Bitcoin, Ethereum And Solana
Why Is The Price Not Rising? An Overview Of Bitcoin, Ethereum And Solana

In this article, we shed light on the current developments surrounding Bitcoin, Ethereum and Solana, three of the best-known cryptocurrencies. We analyze the causes and effects of the current market situation and discuss possible future scenarios.

Bitcoin: Return to the “Boring Zone”

Bitcoin, the oldest and best-known cryptocurrency, is currently going through a phase that many refer to as the “boring zone”. This phase is characterized by stable but unexciting price movements. To better understand the current situation, it is important to analyze recent developments and the underlying factors.

Current market situation

After a significant correction in the previous week, the Bitcoin price has since stabilized at around USD 65,000. This stabilization is seen by some analysts as a return to the “boring zone”, as the price in this area shows neither significant increases nor dramatic drops. The Bitcoin price has since fallen to USD 61,000.

Important key figures and developments

Bitcoin has recently tested several important price levels. In particular, the USD 73,000 mark, known as the “banana zone” and symbolizing euphoric market sentiment, has not been reached. Analysts identify several factors that are necessary for a return to this higher price region.

Selling by miners

One of the most important factors influencing the Bitcoin price is the selling behavior of miners. Since the last halving of Bitcoin rewards, miner revenue has fallen by around 55%. In order to cover their operating costs, many miners have been forced to sell their bitcoins. This selling pressure has helped to depress the price. A reduction in these sales could stabilize and possibly increase the price.

Stablecoin reserves

Another decisive factor is the stablecoin reserves on the crypto exchanges. High stablecoin reserves indicate that investors are willing to invest in cryptocurrencies. An increase in stablecoin reserves could therefore lead to increased purchases and a price increase. Market participants are currently keeping a close eye on the development of these reserves, as they are an indicator of future investment movements.

Outflows from Bitcoin ETFs

In recent days, some of the major Bitcoin ETFs, particularly those of Fidelity and Grayscale, have seen significant outflows. These outflows have caused uncertainty in the market as they could indicate that institutional investors are reducing their positions. A halt or reversal of these outflows could boost confidence in the market and support the Bitcoin price.

Bitcoin ETF Inflows Chart

Bitcoin ETF Inflow/Outflow chart

Macroeconomic influences

In addition to these crypto-specific factors, macroeconomic influences also play an important role. Analysts at BlackRock recently issued a warning to the Federal Reserve, calling for interest rates to be lowered. They argue that persistently high interest rates are hampering economic recovery and call for a move away from the 2% inflation target. If interest rates are indeed lowered, this could weaken the value of the US dollar, which would tend to be positive for Bitcoin and other cryptocurrencies.

Technical analysis

A look at the technical analysis shows that the Bitcoin price has been trending upwards since January. The daily chart indicates a stable development, with several resistance levels being tested. A decisive break above the USD 73,000 mark could pave the way for new highs. However, the price is currently below this level, which indicates an ongoing consolidation phase.

Bitcoin Price Chart

Bitcoin Price Chart

Relevant article: Price analysis: Why is the Bitcoin price crashing?

Ethereum: No longer a security?

Ethereum, the second largest cryptocurrency by market capitalization, has recently achieved a significant regulatory success. The US Securities and Exchange Commission (SEC) has concluded its investigation into the classification of Ethereum and ruled that Ethereum is not a security. This decision provides clarity and certainty for investors and could have far-reaching positive implications for the Ethereum market.

Background to the investigation

The SEC’s investigation focused on Ethereum 2.0, the next generation of the Ethereum network. Ethereum 2.0 marks the transition from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism. With PoS, investors receive rewards in the form of interest or dividends for holding and staking their Ether (ETH). This led to the question of whether Ethereum should be classified as a security, as it generates a form of income through staking.

The SEC’s decision

After a thorough review, the SEC decided that Ethereum is not a security. This decision is based on the fact that Ethereum does not meet the criteria of a security under the Howey test. The Howey test defines a security as an investment of money in a common enterprise with the expectation of profits resulting primarily from the efforts of others. The SEC concluded that Ethereum does not meet these criteria because it is a decentralized network and the returns from staking do not meet the typical characteristics of dividends.

Impact on the market

This clarification by the SEC has several important implications for the Ethereum market and the cryptocurrency industry as a whole:

  • The SEC’s decision brings legal clarity and certainty for investors, which will increase confidence in Ethereum. This could lead to an increased willingness to invest as the risk of future classification as a security is removed.
  • The price of Ethereum reacted positively to the news. Before the announcement, the price was around $3,355, but rose to over $3,500 after the announcement. Analysts expect that a break above the USD 4,100 mark could pave the way for new highs.
  • The clarification from the SEC could lead to more institutional investors investing in Ethereum. Institutional investors are often more cautious when it comes to legal uncertainties. The SEC’s decision could therefore trigger an influx of institutional capital into the Ethereum market.

Technical analysis

A look at the technical analysis shows that Ethereum remains in a positive trend despite the recent corrections. After falling to around USD 3,355, the price recovered and stabilized above USD 3,500. In the short term, the price is trapped in a range between USD 3,500 and USD 4,100. A break above the upper limit of this range could be a strong buy signal and drive the price to new highs.

Ethereum Price Chart

Ethereum Price Chart

Further developments and future prospects

The transition to Ethereum 2.0 is a significant step for the network and the entire cryptocurrency industry. Proof-of-Stake will not only improve the scalability and efficiency of the network, but will also drastically reduce energy consumption. This is particularly important given the increasing criticism of the high energy consumption of proof-of-work-based cryptocurrencies such as Bitcoin.

In addition to technical advancement, Ethereum is expected to play an important role in the field of decentralized financial services (DeFi) and non-fungible tokens (NFTs). Ethereum is already the leading platform for DeFi applications and NFTs, and the transition to Ethereum 2.0 could further strengthen this position.

Solana: Challenges and Opportunities

Solana, one of the most prominent cryptocurrencies and blockchain platforms, has recently experienced both impressive successes and significant challenges. This double-edged development presents both risks and opportunities for investors and developers involved in the Solana ecosystem.

Current market situation

In recent weeks, the price of Solana has undergone a significant correction. From a high of USD 151, the price fell by 24% to around USD 138 within a week. The Solana price is currently fluctuating even lower around the USD 124 mark. This volatility reflects the uncertainties caused by both technical and market-related factors.

Technical problems and safety issues

A significant problem currently affecting Solana is so-called “sandwich attacks“. These attacks occur when transactions are placed before and after a target transaction in order to manipulate the price and thus maximize the attacker’s profit. This often results in retailers receiving lower prices.

To counteract this problem, the Solana Foundation has removed several validators from the network that were suspected of being involved in these attacks. This measure is intended to strengthen the integrity of the network and restore user confidence.

Market reaction and price development

The recent price development of Solana was characterized by a sharp decline, followed by a phase of stabilization. At its lowest point, a price of USD 127 was reached before the market recovered to current levels. Technical analysts are closely monitoring price movements and identifying important resistance and support levels. An important resistance level is at USD 180, while support is observed at USD 125. In the short term, the price could move in a range between USD 138 and USD 180.

ETF speculation

Another factor influencing price volatility is speculation about the introduction of a Solana ETF (Exchange-Traded Fund). Although there have been no official filings or confirmations for a Solana ETF, many investors are hopeful that such a fund will be approved soon. An ETF would give institutional investors easier access to Solana and could lead to a significant inflow of capital. However, it is more likely that an Ethereum ETF will be approved before a Solana ETF is launched.

On-chain and derivatives market analysis

Analysis of on-chain data and derivatives markets shows mixed signals. On the one hand, Solana continues to have a strong presence in decentralized applications (dApps) and smart contracts. On the other hand, some indicators suggest that trading volumes and interest in Solana derivatives have declined.

The decline in trading volume could be due to general market uncertainty and technical issues. Nevertheless, Solana remains one of the leading platforms for the development and trading of cryptocurrencies, especially in the area of so-called meme coins, which are often traded on the Solana blockchain.

Future prospects

Despite the current challenges, there are several reasons to be optimistic about the future of Solana:

  1. The Solana Foundation is continuously working to improve network stability and security. In the long term, these measures could help to regain the trust of users and attract new investors.
  2. Solana has established itself as the platform of choice for many developers, especially in the field of decentralized financial services (DeFi) and non-fungible tokens (NFTs). These applications have the potential to further drive the growth of the Solana network.
  3. With increasing institutional interest in cryptocurrencies overall, Solana could also benefit from increased capital inflows, especially as regulatory clarity and additional investment products such as ETFs become available.


Bitcoin is currently in a stable but unexciting phase, the so-called “Boring Zone”. Various factors, such as selling pressure from miners, the level of stablecoin reserves and outflows from Bitcoin ETFs, are influencing the current price. Macroeconomic developments, such as possible interest rate cuts by the Federal Reserve, could also play a role. Technical analysis shows a stable uptrend, with a break above key resistance levels required to return to the euphoric “banana zone”. Investors should closely monitor these developments and adjust their strategies accordingly.

The SEC’s decision not to classify Ethereum as a security is a significant milestone for the cryptocurrency industry. It brings legal clarity and certainty, boosts investor confidence and could lead to an increase in institutional investment. Technically, Ethereum remains on a positive trend, and the transition to Ethereum 2.0 promises to further enhance the network and cement its leading position in DeFi and NFTs. The coming months and years will show how these developments will impact the Ethereum market and the cryptocurrency industry as a whole.

Solana is currently in a critical phase. Recent technical and market challenges have led to significant volatility and uncertainty. At the same time, however, the platform also offers significant opportunities for growth and development. Investors should closely monitor developments in the Solana ecosystem and weigh up both the risks and the potential. With the right measures to improve network security and stability, as well as positive market sentiment, Solana could further cement its position as one of the leading cryptocurrencies.

The crypto world remains dynamic and unpredictable. While Bitcoin shows stable fundamentals and Ethereum benefits from regulatory clarifications, Solana faces serious challenges. Investors should monitor developments closely and adjust their strategies accordingly. The coming months will be decisive for the future of these and other cryptocurrencies.


Ed Prinz serves as Chairman of https://dltaustria.com, the most renowned non-profit organization in Austria specializing in blockchain technology. DLT Austria is actively involved in the education and promotion of the added value and application possibilities of distributed ledger technology. This is done through educational events, meetups, workshops and open discussions, all in voluntary collaboration with leading industry players.

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This is my personal opinion and not financial advice.

For this reason, I cannot guarantee the accuracy of the information in this article. If you are unsure, you should consult a qualified advisor you trust. No guarantees or promises regarding profits are made in this article. All statements in this and other articles are my personal opinion.

By Ed Prinz

Ed Prinz co-founded https://loob.io, a digital marketplace for blockchain-secured assets, and chairs https://dltaustria.com, a leading blockchain non-profit.

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