Ethereum (ETH) still achieves worse results in a wider cryptocurrency market, currently it trades slightly below USD 1800 after a drop in 4% in the last 24 hours. Despite the sturdy beginning of the year in which the cryptocurrency market experienced a stubborn rush, ETH did not maintain its trajectory up.
Since it fell below USD 3000, the asset component has largely dropped and now violated the USD 2000 support zone, signaling the weakening demand and sentiment.
While Bitcoin and other main digital assets have still been observed by some recovery efforts in recent weeks, a decrease in Ethereum prices is accompanied by a reduction in network activity and weakening of the basics on the chain.
This discrepancy aroused concerns about the low -term ETH perspectives and caused a novel analysis of the underlying causes that drive assets.
Decrease in the fee and inactivity of the fuel network
The analyst Cryptoquant Egyhash has recently published report Emphasizing the key indicators in the chain that suggests the current market weakness of Ethereum is closely related to its decrease in fees and user activities.
According to the report entitled: “Why Ethereum has a bleeding value: the fee catastrophe meets hyperinflation Hellscape.” The Ethereum network has the lowest level of activity from 2020.
Daily vigorous addresses have been constantly falling from the beginning of 2025, and the average transaction fees have fallen to record minima. This reduction of activity has led to a rapid decrease in the Ethereum combustion indicator, which is a key indicator in compensating inflation pressure after passing the network as proof of the rate.
The Dencun update, which was to enhance network performance, coincided with the extended period of low transaction volume, further reducing the income of fees and contributing to higher net emission.
Egyhash states that the convergence of the penniless involvement of the network, a reduced combustion rate and high inflation, is of key importance for the diminutive Ethereum valuation.
Why Ethereum has the value of bleeding
“The last worse results of Ethereum can be largely attributed to reduced network activity, as evidenced by decreasing active addresses and reduced transaction fees.” – By @Egyhashx pic.twitter.com/fgqjycroin
– cryptoquant.com (@cryptoquant_com) April 3, 2025
Ethereum Technical Perpcher signaling potential support
Despite the wind on the chain, some technical analysts carefully keep an hopeful view. Trader courage, technical analyst on x, excellent that Ethereum is currently testing the main support zone and may bounce towards the upper resistance of the current commercial range.
After returning to the green support line. It seems that we could head towards the top of the range.
The key levels are on the chart.#Ethereum pic.twitter.com/rrx8b3b6nw
– commercial courage
(@Cryptocourage1) April 3, 2025
Another market analyst, cryptoelite, common Long -term growing line, which ETH respected historically. Based on this trend, the analyst believes that ETH may still have the potential of gathering up to USD 10,000 later, provided that wider market conditions have improved.
A distinguished picture created from DALL-E, chart from TradingView
