- Summary:
- Ethereum price is under rising downward pressure as falling gas fees point to potential decline in investor enthusiasm.
Ethereum price has plunged further as investor limit their risk exposure in the face of US reciprocal tariffs announced on Wednesday. The crypto coin was down by 1.7% at the time of writing and traded at $1,760- the lowest level since October 2023. ETH has lost 47% of its value year-to-date, underlining a strong bearish hold.
The Ethereum blockchain ecosystem has been losing its grip of some of the most important leverages it holds against its peers in the crypto industry. For instance, its performance in the DeFi market has been on the downtrend, with its Total Value Locked (TVL) down by 8.3% to $49.7 billion.
In addition, there has been a substantial drop in ETH gas fees in recent weeks. According to Glassnode data, Ethereum’s mean transaction fees are currently near four-year lows. That not only shows reduced network congestion, but also points to reduced on-chain transactions, potentially resulting from cooling investor enthusiasm.
The rising popularity of Layer 2 solutions like Arbitrum, Optimism and zySync has contributed to declining demand for space on the mainnet, which has also helped reduce the transaction fees.
However, there is a silver lining to it. With gas prices on the downward, new users and more developers could stream to the Ethereum ecosystem, which could drive up adoption in the long rum. In addition, Ethereum price revival could be catalysed by approval of more spot ETF approval and staking.
In the near-term, however, ETH price will likely stay on the downtrend. The ETHUSD 24-hour trading volume was up by 85% at the time of writing, signaling rising selling pressure as the price declines. That will subdue ETH price reversal potential.
Ethereum Price Prediction
Ethereum price pivots at $1,825 and resistance at that level will likely send the coin lower to find the first support at $1,750. An extended control by the sellers will break below that level and potentially test $1,700.
Conversely, breaking above $1,825 will signal a shift by the momentum to the upside. With the buyers in control ETH price will likely go higher and encounter the first resistance at $1,866. The downside narrative will be invalid if the price breaks above that level, with the resulting momentum paving way to potentially test $1,922.
