Ethereum Faces 26% Monthly Decline, Sparking Recovery Concerns
Ethereum has experienced a challenging month, with its price dropping by 26% over the past 30 days, dipping below $2,111. Currently trading at $2,579, the second-largest cryptocurrency reflects a 3% decline, and its trading volume is down by 2%. Despite this downturn, there has been a noticeable increase in whale activity and network movements.
A key development in the Ethereum ecosystem is the significant drop in gas fees, which have reached their lowest levels in five years. Industry experts suggest that this dramatic reduction in transaction costs might signal a potential price bottom for ETH, even as concerns rise over decreased token burning and an increased supply.
Recently, gas fees on the Ethereum network have plummeted to five-year lows, with some transactions costing less than 1 gwei (around $0.04). This stark contrast to historically high fees has sparked discussions about Ethereum’s future. The reduction in fees is attributed to factors like a sluggish market, increased adoption of layer-2 solutions, and recent network upgrades such as Dencun.
Meanwhile, an Ethereum whale continues to book profits as ETH prices briefly rose above $2,600. Just hours ago, this “diamond hand” whale sold another 15,000 ETH, netting a $40 million profit. The daily Relative Strength Index (RSI) stands at 39, indicating growing selling pressure.
Can ETH Rebound?
Ethereum’s outlook remains uncertain. The daily chart reveals a bearish trend, with the 9-day Exponential Moving Average at $2,611.
If bullish momentum returns, Ethereum could encounter resistance at $2,879 and $3,019. However, if bearish sentiment persists, the price might drop to $2,477, with potential support at $2,196.
As Ethereum navigates this challenging period, the market is watching closely for signs of recovery. Whether ETH can bounce back will depend on upcoming market dynamics and shifts in investor sentiment.