According to Cointelegraph: As of December 15, Ethereum (ETH), with a current price of $2,280, is experiencing a decline after failing to break through the $2,320 resistance level. This downturn can be attributed to several factors including regulatory comments, an attack on the Web3 ecosystem, reduced Ethereum network activity, and criticism from a former Ethereum Foundation developer.

Of particular note is SEC Chair Gary Gensler's recent remarks, stressing the applicability of existing laws and regulations to "crypto securities markets" and advocating for immediate regulatory action. Gensler mentioned in the SEC's latest statement concerning "outsize fraud, abuse, and noncompliance" in the crypto market that "the investing public benefits when intermediaries are registered and overseen."

In addition to this, a critical hacking incident on December 14 using a phishing exploit impacted the Ledger connector and a host of decentralized applications (DApps). This occurrence exposed the reliance of the Web3 ecosystem on code developed and maintained by large corporations, thus negatively influencing investor perceptions of the decentralized finance (DeFi) industry.

Also contributing to Ethereum's decline is high network fees, with an average transaction fee of $9.90 proving impractical for most transactions, driving users towards Layer 2 solutions or competitor blockchains like Solana and Avalanche. Ethereum's total value locked (TVL) has decreased by 5% since November 30, and decentralized application volumes on Ethereum have remained below the $1.8 billion benchmark for over a month.

Lastly, negative remarks from a former Ethereum Foundation developer posted on the social network X on December 14 contributed to Ethereum's wearied performance. The social media post emerged amidst a backdrop of regulatory pressure and decreasing Ethereum network activity, amplifying its negative connotations. Therefore, a constellation of regulatory, security, and network proliferation issues appear to be the key factors behind Ethereum's current price fall.