Ethereum faces excessive hellscape for inflation-the analysis reveals major visions of the series
ETHEREUM (ETH) continues to perform in the broader encrypted currency market, as it is currently being traded slightly less than $ 1,800 after a decrease of 4 % over the past 24 hours. Despite a strong start for this year, as the Crypto market has seen an upward momentum, ETH failed to maintain its upward path.
Since slip below $ 3,000, the original has ranged largely down, and has now violated the $ 2000 support zone, indicating poor demand and feeling.
While Bitcoin and other major digital assets are still able to see some recovery efforts in recent weeks, the decline in ETHEREUM prices has been accompanied by a reduction in network activity and weakening the basics of the series.
This difference raised concerns about ETH expectations in the short term and prompted a new analysis of the reasons behind the leadership of the original performance.
Low fees and inflationary pressures in the lack of activity of the network
Cryptoquant analyst recently published a report The highlight of the main standards on the chain indicates that the current market weakness in Ethereum is closely related to the fee economy and user’s activity.
According to the report titled: “Why Ethereum Blings of Value: The fees are disrupted by helsca helscape.” Ethereum has the lowest level of activity since 2020.
Daily active headlines have decreased steadily since early 2025, and the average transaction fee has decreased to record its lowest levels. This reduction in the activity has led to a sharp decrease in the ETHEREUM burning rate, a decisive scale in compensating for inflationary pressures after the network moved to prove the ascension.
The DENCUN upgrade, which was expected to enhance the efficiency of the network, coincided with a long period of low transaction volumes, reducing the income of fees and contributing to the height of the net ETH version.
Mihash concludes that the meeting of the weak network sharing, low combustion rate, and highly distinctive symbol enlargement is essential in the low ETHEREUM assessment.
Why ethereum is the value of bleeding
“The last weak performance of Ethereum can be largely attributed to the decrease in the network activity, as it is clear from the low active headlines and reduced transactions fees.” – By egyhashx pic.twitter.com/fgqjycroin
– Cryptoquant.com (Cryptoquant_com) April 3, 2025
Ethereum Technical Outlook indicates a possible support
Despite the opposite winds on the chain, some technical analysts maintain an optimistic vision with caution. Trader Courage, Technical Analyst on X, male Ethereum is currently testing a major support zone and can refresh towards the upper resistance of the current trading scope.
Again in the green support line. It seems that we can go towards the top of the range.
Keys on the graph.#ETHEREUM pic.twitter.com/RRX8B3B6NW
Trader’s courage
(@cryptocourage1) April 3, 2025
Another market analyst, Cryptoelite, subscriber The long -term trend line that ETH respected historically. Based on this trend, the analyst believes that ETH still has the ability to upgrade to 10,000 dollars later in the year, provided that the wider market conditions are improved.
A distinctive image created with Dall-E, the tradingView chart
