Ethereum (ETH) has seen a sharp decline in recent weeks, dropping over 55% from its December peak of $4,000 to around $1,800. The network transaction fees have also reached their lowest level in four years. Data shows a decrease in daily active addresses on the Ethereum network from 717,000 at the beginning of the year to 461,000 in mid-March. This reduced network activity is considered a major factor in the fee drops. Additionally, long-term holders selling pressure has increased, indicating their inclination to exit the market. If this situation persists, the possibility of Ethereum’s price dropping to $1,200 by June 2025 is raised. However, the rise in popularity of layer-two solutions providing lower fees and faster speeds has led to a decrease in demand for the Ethereum main network, lowering transaction costs. If this trend continues, Ethereum’s long-term market position may also be affected. Ethereum recently tried to reclaim the $2,000 level but failed. Analyst Ali Martinez believes Ethereum needs to break the $2,100 resistance and then reach above $2,300 for a definite trend change. In conclusion, fee decreases and reduced demand in the Ethereum network have raised concerns about its future. Nevertheless, technical analysis suggests that ETH could return to an upward trend, contingent on breaking key resistances. Check the real-time prices of all tokens and cryptocurrencies on the digital currency page.
