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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Apr 01, 2025 06:48 UTC
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ETH Under $2000: Holders Sell, Fees Reach Historic Lows! Should You Buy Now?
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ETH $ 1,871.62 (-0.22%) 
Ethereum's price has plummeted, down 55% from its December high, making it a weak performer among major cryptos.
Transaction fees on Ethereum have hit a four-year low, attributed to decreased network activity and increased layer-2 solution usage.
Ethereum is showing signs of potential recovery, but needs to break above $2,000 to regain significant strength.
Ethereum is going through a rough patch. Its price has plunged 55% from its December high of $4,000 to below $1,800, making it one of the weakest performers among major cryptocurrencies. At the same time, transaction fees have dropped to a four-year low, raising big questions – are fewer people using Ethereum, or is this a setup for a major rebound?
With network activity slowing and investors on edge, Ethereum’s future looks uncertain.
Let’s break it down.
Ethereum’s Transaction Fees Hit a Four-Year Low
Recent data shows that Ethereum’s transaction fees have dropped to their lowest levels in nearly four years. While this makes transactions more affordable, it also raises concerns about reduced network usage. For retail investors who previously avoided Ethereum due to high gas fees, this could be an opportunity to re-enter the market.
Why Are Fees Dropping?
Several factors are contributing to this decline:
- Lower network activity: Data from Santiment shows that daily active addresses have fallen sharply, from 717,000 earlier this year to 461,000 in mid-March. Fewer transactions mean lower fees.
- Increased selling by long-term holders: Ethereum’s realized cap HODL wave has dropped to its lowest level since August 2023. This suggests that long-term holders are selling more ETH, increasing supply and pushing prices down.
- Growing popularity of layer-2 solutions: Ethereum’s layer-2 networks, such as Arbitrum, Base, and Optimism, offer lower fees and faster transactions. As more users migrate to these alternatives, demand for Ethereum’s main network declines, further reducing transaction costs.
If this trend continues, Ethereum could face long-term challenges in maintaining its dominance.
Ethereum Price Outlook
Ethereum has been unable to stay above $2,050 and recently fell below $1,850, showing continued weakness. The price is now consolidating, with resistance around $1,850.
Some technical indicators suggest mixed signals:
- The Relative Strength Index (RSI) is at 37, indicating that bearish momentum is fading.
- The Stochastic Oscillator (Stoch) has entered the overbought zone, hinting at a possible pullback.
Currently, Ethereum is trading at $1,852, reflecting a 2.81% gain in the last 24 hours but still showing a 12% decline over the past week, highlighting ongoing market pressure.
Can Ethereum Recover?
For Ethereum to regain strength, it needs to break above the $2,000 resistance level and hold that position. If demand increases, ETH could see a recovery, but if selling pressure continues, further declines remain a possibility.
This isn’t the first time Ethereum has been tested, but the question is: will it bounce back like before or take a detour no one saw coming?
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FAQs
As per our Ethereum price prediction 2025, the ETH price could reach a maximum of $5,925.
As the altcoin season begins, the short-term gains make Ethereum a lucrative buying option. However, the long-term promises of this programmable blockchain make it a viable long-term crypto investment.
Yes 
No 
