Why Ethereum (ETH) Cannot Rise? JPMorgan Analysts Explained, Warned for What Happened After!

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

While ETH failed to meet investors' expectations, JPMorgan warned that Ethereum could continue its poor performance.

According to The Block, analysts at US banking giant JPMorgan said in their latest research report that Ethereum is facing constant pressure from its competitors.

The analysts also added that Ethereum’s market cap share has fallen to a four-year low as competition from blockchains such as Solana (SOL) and layer-2 (L2) networks intensifies.

JPMorgan analysts led by Nikolaos Panigirtzoglou said:

“Ethereum has been lagging behind not only Bitcoin but also other altcoins.

ETH's share of total crypto market cap has now fallen to a four-year low, indicating increasing pressure from competitors.”

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

Analysts warned that competition between ETH and its rivals and the pressure on its price will continue, as major dApps such as Uniswap, dYdX, and Hyperliquid have also switched to their own chains, raising concerns about Ethereum’s long-term fee income and sustainability.

*This is not investment advice.