Summary
-
Price Decline: Ethereum’s price has fallen below $1,760, a level last seen in Autumn 2023, signaling potential further downward pressure.
-
Network Activity Downturn: Ethereum is experiencing decreased network activity with a drop in active addresses and transaction fees, weakening its token-burning mechanism.
-
Bearish Market Factors: Technical resistance at $1,835 and external factors like tariff announcements are contributing to bearish sentiment and downward pressure on Ethereum’s price, alongside an increasing token supply.
-
Future Price Dependent on Key Levels: Ethereum’s short-term price trajectory hinges on whether it can hold above $1,760 or break above $1,835, with continued low network activity posing a risk to recovery.
The cryptocurrency Ethereum, second only to Bitcoin in market size, is currently experiencing considerable negative pressures, causing its price to fall to levels last seen in the fall of 2023.
This downturn has seen Ethereum’s value slip below the $1,760 mark, a noteworthy event that has captured the attention of traders and analysts alike.
Crossing this critical price point has led many in the market to speculate about the potential for further price declines shortly.
Price Decline and Market Concern
Data from CryptoQuant, a blockchain analysis company, highlights a concerning trend of reduced user participation on the Ethereum network since the beginning of the year.
Specifically, the number of active Ethereum addresses has fallen dramatically to its lowest point in several months.
Adding to these woes, transaction costs on the network have also reached record lows, significantly weakening the process by which Ethereum tokens are removed from circulation.
Friday’s trading activity for Ethereum was marked by significant price swings, fluctuating between $1,760 and $1,835.
Attempts to push prices higher met strong resistance at the $1,835 level, particularly from the 50-hour and 100-hour exponential moving averages, which ultimately proved too strong to overcome and resulted in a price pullback.
A recent announcement regarding potential tariffs from former US President Trump reverberated through financial markets, contributing to a sharp downward reversal from a previous high of $1,955.
This market reaction pushed Ethereum’s four-hour Relative Strength Index (RSI) below 40, a technical indicator suggesting increasing negative sentiment among investors.
Challenging Fundamentals and Supply Increase
Ethereum’s current struggles are compounded by weakening underlying factors and a noticeable decrease in network activity.
The overall supply of Ethereum in circulation has increased due to a slower rate of token burning, further contributing to downward pressure on its market price.
Looking ahead, market experts believe that Ethereum’s immediate future depends on its capacity to hold above the $1,760 price level.
Failure to maintain this level could expose Ethereum to further price depreciation.
Conversely, a strong upward movement beyond $1,835, accompanied by substantial trading volume, could indicate the beginning of a recovery.
The continued lack of strong network activity could persist in negatively influencing market sentiment.
Also Read: Ethereum Price Reaches Lower Levels Not Seen Since Autumn 2023
Ethereum’s price has fallen below $1,760, reaching levels last seen in autumn 2023, due to reduced network activity and tariff concerns. The cryptocurrency’s price has been impacted by reduced user activity, record-low transaction fees, and negative market sentiment following potential tariff announcements. Market analysts emphasize the importance of the $1,760 price level for future price direction, as failure to hold this could lead to further price declines. A strong move above $1,835 might signal a potential recovery, but sustained network activity is crucial. CryptoQuant data shows a reduction in user activity since January, with the number of active addresses on the Ethereum platform decreasing to its lowest count in several months. Market analysts observed price fluctuations between $1,760 and $1,835, with…[Read More]
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
Wallets