Ethereum is currently going down mainly due to a combination of macroeconomic uncertainty, fears of a U.S. government shutdown, rising interest rate concerns, and large institutional outflows, especially from Ether-linked exchange-traded funds (ETFs). Additionally, weak futures activity, large liquidations of leveraged long positions, and increased speculative trading on borrowed funds are creating short-term downward pressure. Ethereum recently fell below the key psychological level of $4,000, marking its weakest point in nearly seven weeks, with the next technical support level seen around $3,800. Reduced on-chain activity and competition from other blockchain networks are also contributing factors, alongside general investor caution amid economic jitters. Key points:

• Fear of U.S. government shutdown has spooked investors, leading to risk-off sentiment.
• Large outflows from Ethereum ETFs and weak institutional demand.
• Over $442 million in leveraged crypto positions liquidated recently.
• Ethereum dominance in the market has declined, reflecting loss of relative relevance.
• On-chain activity and transaction volumes have decreased, signaling reduced network usage.
• Technical indicators show Ethereum is oversold but lacking immediate rebound momentum.
• Market selloff has wiped out over $140 billion in crypto value since early September.
• Broader economic concerns like inflation and interest rates cause traders to be cautious on risk assets including crypto.

This combination of factors has led to Ethereum's price decline despite it being near historical highs earlier in the year.