Coinbase Global Head of Research, David Duong, stated in a report that "Ethereum network activity and supply inflation are significant factors contributing to its underperformance, but we also believe the current market structure is influencing price movement." Many cryptocurrency investors are focused on altcoins and other positions that are difficult to exit, potentially locking up funds that could be flowing into networks like Ethereum within the broader crypto ecosystem.

"Currently, native cryptocurrency investors are dominating the market, and this group may be concentrated on altcoins and other crypto positions that are more difficult to exit. We believe that for Ethereum to catch up, a new catalyst is needed to reignite developer and investor enthusiasm," he added.

Duong also noted that due to a lack of new narratives and limited capital supply, the market is increasingly focused on comparisons between Ethereum and other smart contract platforms. "In fact, we believe many traditional players still lack a better understanding of Ethereum's supply schedule and smart contract utility."