Ethereum’s value has decreased, falling under $1,760, a price point last observed in autumn of 2023.
This decline for the cryptocurrency, ranked second by market capitalization, occurs amidst significant negative market pressures.
The recent price movement below $1,760 has raised concerns among traders about Ethereum’s future market direction.
Market analysts are evaluating the possibility of further price reductions after this break of a key support level.
Reduced Network Usage Reported
CryptoQuant, a blockchain analytics company, indicates a substantial reduction in Ethereum network activity since January.
The count of active addresses on the Ethereum platform has fallen to its lowest point in multiple months.
Simultaneously, transaction fees have reached record lows, weakening the Ethereum token-burning mechanism.
Price Volatility and Technical Barriers
During Friday’s trading, Ethereum‘s price fluctuated between $1,760 and $1,835. The 50-hour and 100-hour exponential moving averages presented technical resistance at the $1,835 level.
This resistance proved too strong, resulting in a subsequent price retreat.
Tariff Announcement Impacts Market Sentiment
A recent announcement concerning potential tariffs by former President Trump impacted the cryptocurrency market, causing a sharp reversal from a price level of $1,955.
This event pushed the four-hour Relative Strength Index below 40, signaling increasing negative market sentiment.
Weakening Core Indicators and Supply Increase
Deteriorating fundamental factors, combined with decreased network activity, are creating a challenging environment for Ethereum.
A reduction in token burning has led to an increase in the net supply of Ethereum.
This increased supply contributes to downward pressure on its market value.
Critical Support Level and Future Market Direction
Market analysts suggest Ethereum’s capacity to maintain a price above the $1,760 support level is crucial for its short-term outlook.
Failure to hold this level could expose Ethereum to further price declines.
Conversely, a movement above $1,835 with significant trading volume may indicate the beginning of a recovery.
Sustained low network activity could continue to negatively influence market sentiment.
