Ether (ETH) has dropped more than 5.1% over the last 24-hour period to less than $ 2,600, while Bitcoin (BTC) is down about 2.9% in the same period to $ 95,700.

The largest altcoin prize performance has pushed the Coindesk 20 index down by almost 4% in the period in the middle of a market decline, also affected shares markets over US President Donald Trump, who announced plans to reveal mutual tariffs next week, thereby fearing a fear of a Trade war with the trade with it has with the country’s largest trading partners.

Nevertheless, the Ether’s underpresty comes in the midst of other factors affecting cryptocurrency specifically, including its circulating supply, which has recently risen past pre-merge levels. The Ethereum merger network’s merger with the Beacon chain, which moved it to a proof-of-stake (POS) consensus mechanism-expected was largely expected to help its supply to fall, and it did for months.

However, the trend turned in April, weeks after the activation of the highly expected “Dencun” upgrade. This upgrade suppressed the growth of Layer-2 networks by reducing their data fees and introducing transaction “clumps”, which helped reduce transaction fees.

Reduction of transaction fees at Ethereum has meant that less ether is burned, which in turn turned Cryptocurrency’s supply trend. Since the introduction of EIP-1559 in 2021, each ether transaction has a base fee that is burnt, which helps reduce the supply of ETH.

The reduction in the burned ether has seen Eth’s supply grow in the last few months to the point that its circulating supply has grown by 8,242 ETH since the merger, data from ultrasound.money shows.

Ether also saw Securities and Exchange Commission (SEC) recently delay its decision on listing options for Blackrocks Ishares Ethereum Trust (ETHA), which could also weigh on Cryptocurrency’s performance.

Other factors, including a restriction on the Ethereum Foundation and increased competition from other networks, including Solana, have also had an impact on Ether, whose value compared to BTC recently fell to 2021 -low. In a research report, JPMorgan has said that eth is missing a compelling tale like BTC

Despite the bearish performance, analysts have pointed out that Ether’s award mirroring a pattern, as it was before, followed by renewed Bullish Momentum. Friday, Jake Ostrovskis, an OTC businessman at Crypto Market Maker Wintermute, told Coindesk that he saw “strong demand for ETH.”

Analysts at Santiment pointed out on social media, which has been a decrease in the amount of Eth -tokens with a surplus when they were first extracted as Bearish mood affects cryptocurrency, which can be a potential setup for a surprise shopping “once crypto markets are able to stabilize. “