Ethereum, the second-largest crypto, is under extreme short-seller pressure as pessimistic bets pile up and network activity plunges. Options traders on Deribit are building foundations with serious commitments. So far, they’ve spent $110 million on these contracts, which will pay out if Ethereum’s price remains under $1,800 in mid-April. Ethereum price remains under $1,600 on Tuesday, showing a 2% decrease in the past 24 hours. That bearish sentiment would seem to directly oppose Bitcoin and XRP’s very modest price increases.

Bearish Bets and Price Decline

Traders are making record amounts of bets on bearish options contracts. This demonstrates their growing conviction that Ethereum’s price will struggle to clear the $1,800 threshold in the weeks ahead. This negative outlook is further reinforced by the fact that Ethereum's price has already fallen by more than 40% since February.

“Ethereum short sells are at an all-time high [as] institutions are driving the price down” - Zach Burks

One trader was recently forced to realize a $74 million loss due to Ethereum’s price fall. To add fuel to the fire, a DeFi project dumped $8 million of Ethereum last week, adding to the sell pressure on the market.

Dwindling Network Activity

Losing users In addition to the market price movement, the Ethereum network is losing steam on the user activity front. Daily unique traders on the network hit a record low in the last year. The 2 million drop is the first noteworthy decline and could be the leading indicator of decreasing engagement on the platform. Weekly code contributions on the Ethereum network have crashed 67% this year.

“It’s time to face reality,” said web3 marketer Stacy Muur last week. “This isn’t the ‘efficiency zone,’ I’m afraid. This is stagnation.”

XRP's Potential Gain

As Ethereum continues to have difficulty finding its footing, that gives room for other cryptocurrencies such as XRP to benefit. XRP might be the biggest winner of all, if Ethereum does not manage to bounce back from its recent downward spiral.

“Crypto isn’t safe in the immediate term ― expect Ethereum to crater to $1,600” - Zach Burks