Ethereum (ETH) has been struggling to keep up with the broader cryptocurrency market, with its price currently hovering just below $1,800 after a 4% drop in the past 24 hours. Unlike Bitcoin and other major digital assets that have shown signs of recovery, Ethereum has failed to maintain its bullish momentum since slipping below the $3,000 level earlier this year.
The decline in Ethereum’s price has been accompanied by a decrease in network activity and weakening on-chain fundamentals. Daily active addresses have been on a steady decline since early 2025, and average transaction fees have hit record lows. This reduction in network engagement has resulted in a significant drop in Ethereum’s burn rate, a key metric for offsetting inflationary pressures following the network’s shift to proof-of-stake.
The recent Dencun upgrade, which was intended to improve network efficiency, has coincided with a prolonged period of low transaction volumes, further reducing fee income and leading to higher net ETH issuance. As a result, Ethereum’s market weakness can be largely attributed to its declining fee economy and user activity, as highlighted in a report by CryptoQuant analyst EgyHash.
Despite these on-chain challenges, some technical analysts remain cautiously optimistic about Ethereum’s future. Trader Courage noted that Ethereum is currently testing a major support zone and could potentially rebound towards the upper resistance of its current trading range. Another analyst, CryptoElite, pointed to a long-term ascending trendline that Ethereum has historically respected, suggesting that ETH still has the potential to rally to $10,000 later in the year if broader market conditions improve.
While Ethereum’s short-term outlook may be uncertain, there is still hope for a potential recovery in the long run. As the cryptocurrency market continues to evolve, it will be interesting to see how Ethereum adapts to changing market dynamics and whether it can regain its bullish momentum in the months ahead.