Ethereum: price decline to $ 1.750 and declining network activity set the second largest cryptocurrency
<p> <strong> Ethereum: price decline to $ 1.750 and declining network activity set the second largest cryptocurrency </strong> </p>
Current developments in Ethereum (ETH) Price and network activity
The cryptocurrency Ethereum (ETH) has experienced a number of dramatic changes in the past few weeks. On March 11, 2024, the $ 1,750 fell to $ 1,750 before a rapid recovery followed by 18 %. Despite this short -term stabilization, the long -term perspective of Ethereum is characterized by various negative trends.
price movements and technical analysis
The price movement of Ethereum has so far shown a Bearish chart pattern. A Bearish flag can be seen on the daily -type that typically signals strong down moment. Analysts discuss the possibility of a further drop in price to $ 1,200. At the same time, the average transaction fees in the Ethereum network have reached an all-time low, which continues to burden the trade environment.
declining network activity
The current situation of the Ethereum market is underlined by a declining network activity. As a result of a striking decline, triggered by political uncertainties, such as the customs threats of US President Donald Trump, the price of Ethereum fell by almost 50 %over a period of less than two months. From a maximum of $ 3,432 on January 31, 2024, the price dropped to the 16-month low of $ 1,750. Despite a recovery in the days after, Ethereum could not achieve the decisive breakthrough over the $ 2,000 mark.
The daily transaction number has now reached levels that were last observed in October 2024, before Trump's election victory. The daily transaction fees were also significantly fallen and achieved an all-time low of 0.00025 ETH (about $ 0.46) on March 24th.
inflationary environment by sunken combustion rate
Another concern for Ethereum is the lower combustion rate, which leads to an inflation -like environment. The daily incineration rate for ETH has dropped greatly, and data from Ultrasound.money show that the forecast combustion rate has fallen to 25,000 ETH per year. At the same time, the increase in the offer has increased to 0.76 % per year, which leads to an annual issue of 945,000 ETH.
This increase in the offer since April 2024 has the previously deflationary phase, which began with the transition to proof-of-stake (Merge) in September 2022. The entire offer from Ethereum has now exceeded the values before the merge, which further accentuates the situation.
price forecasts and dealer optimism
ETH/USD pairing faces the challenge of continuing its prevailing Bearish momentum, despite the recent relaxation. The formation of a classic Bearic pattern indicates that a daily closing course below the lowest limit of the flag could lead to a massive decline at $ 2,000, with a target value of around $ 1,230.
Despite these negative signals, some dealers express a certain optimism. Analyst Jelle emphasizes that the price could try to regain an important level of support at $ 2,200. If this succeeds, a significant positive development would be possible. Another analyst, crypto ceaser, describes Ethereum as "strongly undervalued" and sees the current prices as potential ground formation.