NEWSLETTER
Key notes
- ethereum has continued playing the state of helpless in terms of pricing.
- The digital currency has a series of factors, including inflationary pressure that affect its price.
- Optimism is still high for a long -term pricing breakup for eth.
ethereum's price
eth
$ 1 762
24h Volatility:
5.5%
MARKET CAUT:
$ 212.86 b
Volume 24h:
$ 26.72 b
The largest Altcoin in the world is fighting despite a recent broader market recovery. The data in the chain show that eth is experiencing a weak network activity, a fall in transaction rates and inflationary pressure of the Dencun update.
Analysts warn that these factors exert a downward pressure on ethereum, hindering their highly anticipated recovery.
Reasons for eth fall for cryptocant
According to Cryptoquant, several reasons are behind the prolonged decline of the ethereum market. The analysis platform points to the continuous decrease in active addresses as an important factor.
This metric has been constantly falling since January 2025. A decrease in users leads to a lower demand for digital asset, decelerating the general activity of the network.
Another worrying topic is the transaction rates of ethereum, which have reached minimal records. The data in the chain reveal that the average transaction rates and the block have been weaker since the “ethhereum fusion”.
<blockquote class="twitter-tweet”>
Why ethereum is a bleeding value
“ethereum's low recent performance can be attributed largely to the activity of the diminished network, as evidenced by the decrease in active addresses and reduced transaction rates.” – By <a target="_blank" href="https://twitter.com/EgyHashX?ref_src=twsrc%5Etfw”>@Egyhashx pic.twitter.com/fgqjycroin
– Cryptoquant.com (@cryptoquant_com) <a target="_blank" href="https://twitter.com/cryptoquant_com/status/1907723209014759705?ref_src=twsrc%5Etfw”>April 3, 2025
Since ethereum depends largely on rates to feed its burns mechanism, this decrease has reduced the amount of eth eliminated from circulation. The reports indicate that the ethereum inflation rate has increased with the burning rate at its lowest point from the merger, adding more pressure to the price.
Many experts believe that the introduction of the Dencun update in 2024 should help the ethereum ecosystem causing transactions to be cheaper, especially for layer 2 networks.
However, one of the recurring side effects of this update is the reduced burning of eth. This has led to a greater supply of ethereum than demand. This situation has worsened the inflationary perspective of ethereum, contributing to the price recession.
Another important factor that affects the price of ethereum is the lack of emotion in the derivative market. ethereum's perpetual futures financing rates have remained neutral since March 31, demonstrating that merchants are not betting on a significant price movement.
ethereum ecosystem updates
The price of ethereum has dropped 44% in the year in which the derivative metrics will be held, it suggests that merchants are not optimistic. The metrics show little confidence in a strong short -term recovery, as is evident in the premium of Ether's futures compared to Spar markets.
The ETFs of ethereum Spot have registered net exits of $ 37 million in the last two weeks, which suggests that the institutional interest has weakened. Unlike btc Spot ETF, eth has fought to transfer investors to boost more funds to the cryptocurrency network.
ethereum's pricing and analysis analysis
ethereum's Stablecoin holdings are close to a historical maximum of $ 124.5 billion, with $ 49 billion in total locked value (TVL). This shows a strong potential for the adoption of eth, especially as new cases of use such as structured products and advanced AFI applications arise.
Meanwhile, ethereum's future price movement will depend on whether the network activity increases again. With low rates, a weak burning rate and merchants who remain on the sidelines remain under pressure. However, feeling in the encryption market can change rapidly.
ethereum's price could see a strong rebound if investors recover confidence or if positive catalysts arise. Until then, the market remains in waiting mode.
Coinmarketcap data show that ethereum is quoted at $ 1,793.58, less at 4.19%. Despite this, it remains the second largest cryptocurrency, with an increase of 67.24% in the volume of negotiation in the last 24 hours.
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Discharge of responsibility: Coinspeaker undertakes to provide impartial and transparent reports. This article aims to offer precise and timely information, but should not be taken as financial or investment advice. Since market conditions can change quickly, we recommend that you verify the information on your own and consult a professional before making any decision based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real -life applications of Blockchain technology and innovations to boost the general acceptance and world integration of emerging technology. His desire to educate people about cryptocurrencies inspires their contributions to the renowned blockchain media and sites.
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