Ethereum's Struggle: Fair Value Alignment and Liquidity Headwinds

Ethereum has now aligned with its fair value within the AE Global Liquidity Bands, continuing its downward trajectory.

Historically, this zone has marked a pivotal point-where prices either stabilize, initiate a reversal, or accelerate their decline toward lower liquidity thresholds.

After such a poor YTD performance, all it took was a reclaim of the 3.5k level and ETH was quick to become a consensus trade on CT where many, including us, anticipated it being primed to outperform Bitcoin for a certain period.

However, without meaningful liquidity injections in the near term, ETH's performance continues to decline, increasing the likelihood of testing the bottom band.