NewsBTC

4 April 2025
Updated 5 April

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Ethereum Prices Decline Amid Low Network Activity and Fee Economy

Ethereum (ETH) is currently trading below $1,800, having declined 4% in the past 24 hours. Key points include:

• ETH has struggled to maintain upward momentum after slipping below $3,000 and breaching the $2,000 support level.
• Network activity and on-chain fundamentals are weakening, contributing to price declines.
• Daily active addresses have decreased, leading to lower transaction fees and a reduced burn rate, exacerbating inflationary pressures.
• The Dencun upgrade coincides with low transaction volumes, increasing net ETH issuance.
• Analyst EgyHash attributes ETH’s decline to diminished network activity and high token inflation.

Despite these challenges, some analysts view potential support levels as a sign for possible rebounds. Technical analyst Trader Courage noted testing of a major support zone that could lead back toward upper resistance. Another analyst suggests the potential for ETH to reach $10,000 later this year if market conditions improve.