Ethereum Gas Fees Down 95%, Price Falls 1.29% to $1,883 as Bearish Sentiment Persists Ethereum Gas Fees Down 95%, Price Falls 1.29% to $1,883 as Bearish Sentiment Persists

Key moments

• Ethereum’s price fell 1.29% to $1,883.3 on Thursday.
• Although a significant 95% reduction in gas fees has been achieved, Ethereum’s price continues to decline.
• Technical complications surrounding Ethereum’s Pectra upgrade have also dampened confidence in the coin.

Ethereum’s Price Continues to Struggle

Ethereum’s price continues to struggle, registering a 1.29% decline today to $1,883.3. This downward trend, pushing the cryptocurrency further below the critical $2,000 threshold, reflects a complex interplay of market forces and technical challenges. Earlier in the day, Ethereum’s value dipped to approximately $1,856, highlighting the persistent bearish pressure.

Ongoing macroeconomic uncertainties have significantly impacted Ethereum’s valuation, resulting in a 52.8% drop since December 2024. At present, Ethereum’s price is consolidating, bounded by a $1,960 resistance and a $1,840 support level. This consolidation is further supported by the 100-period EMA on the 4-hour timeframe. A move above the resistance could pave the way for a retest of the $2,000 pivot, while a breach of the support could expose Ethereum to further declines, potentially revisiting the $1,755 floor.

Another indicator of the challenges Ethereum has been undergoing is its persistent underperformance against Bitcoin, seeing as the ETH/BTC pair’s weekly relative strength index (RSI) has fallen to an oversold 23.32. This decline has persisted since 2017, during which Ethereum has lost over 85%.

Despite the recent price struggles, Ethereum has made notable strides in enhancing its network efficiency. One year after Ethereum’s Dencun upgrade, its average gas fees have fallen by 95%. However, this achievement has not translated into a corresponding price surge, with Ethereum’s value actually decreasing by 53% since the upgrade’s implementation.

Looking ahead, the upcoming Pectra upgrade, while promising to further enhance network capabilities, has encountered technical hurdles during testnet deployments. These complications, though not deemed catastrophic by developers, highlight the ongoing challenges in maintaining network stability and ensuring smooth upgrades.

Some analysts see a potential for a bullish reversal. Historical data suggests that Ethereum is approaching oversold levels that have previously signaled major buying opportunities. The accumulation of Ethereum by whales also suggests that some investors view the current price as a strategic entry point. Furthermore, potential regulatory developments, such as the SEC’s consideration of staking within spot Ethereum ETFs, and the continued progress of the Pectra upgrade, could provide catalysts for a price recovery.