Ether is facing challenges in maintaining its support level of $3,000, as its price has dropped by 4.1% over the span of just two days, currently hovering around $2,999. Several factors contribute to this downward momentum, including delays in the launch of an Ethereum spot exchange-traded fund (ETF) in the United States, decreased network usage, and a significant reduction in the ETH burn rate. Since April, Ether's price has experienced a 15% decline, reflecting a bearish trend in the market.

The remarks made by Susan Collins, the Boston Federal Reserve Chair, have further exacerbated investor sentiment. Collins suggested that resilient inflation may necessitate the central bank to maintain higher interest rates for an extended period, potentially dampening economic growth. This could prompt investors to seek refuge in alternative assets like cryptocurrencies. However, increased stock buybacks in the U.S. market, driven by well-capitalized companies, add complexity to Ether's recovery path by reducing sell pressure despite potential earnings growth.

While Ether's performance is affected by the overall correction in the cryptocurrency market capitalization since May 6th, other altcoins like BNB, Tron, Cardano, and Litecoin have outperformed Ether by 3% or more during the same period. Even compared to Bitcoin, Ether has lagged by 1.5%, indicating specific factors impacting its price. The postponement of the SEC's decision on the Invesco and Galaxy Digital ETF proposal until July 2024, coupled with the lack of clarity from SEC Chair Gary Gensler on Ethereum's security status, has diminished investor confidence in the ETF's prospects.

On-chain analysis reveals concerning trends for Ethereum, with the burn mechanism hitting its lowest levels in 2024. The EIP-1559 protocol, which burns a fraction of gas fees per transaction, has led to lower network demand and increased ETH supply growth. This decline in demand has affected Ethereum's ecosystem, impacting projects like Arbitrum, Base, Polygon, and ZkSync Era. In contrast, platforms like Solana and Thorchain have shown increased activity, highlighting the shifting dynamics within the cryptocurrency landscape. The uncertainty surrounding recent regulatory actions against the crypto industry, including Consensys, may also contribute to the weakness in Ethereum's price.