Ethereum Faces Struggle: Record-Low Fees and 6% Price Drop Signal…

Ethereum has faced challenges recently, despite optimism surrounding the Spot ETF. The network activity of Ethereum has seen a decline over the past few months, coinciding with a 6% drop in price. However, there are indications of a potential trend reversal on the charts amidst the overall bearish sentiment in the crypto market.

A notable development in Ethereum’s network activity was highlighted by IntoTheBlock, revealing that Ethereum’s fees hit a 9-month low of $18.2 million, with gas fees dropping to as low as 1 gwei. Despite the fee decrease, Ethereum’s revenue remained high, as observed through Token Terminal’s data showing ETH leading in revenue among cryptocurrencies over the last six months.

Analyzing Artemis’ data shed light on Ethereum’s declining daily active addresses and transactions in the past three months. Despite this, Ethereum has processed over 2.44 billion transactions with an average TPS of 14.

The market bears have exerted pressure on Ethereum’s price, resulting in a 9% loss over the last seven days and a 6% drop in the past 24 hours. However, there are positive signals indicating a potential price surge soon. Lookonchain revealed that a smart money entity with a 100% positive track record has bought ETH, suggesting a possible price increase.

Glassnode’s data analysis showed a decrease in Ethereum’s NVT ratio, indicating that the asset may be undervalued, potentially paving the way for a price hike. Additionally, Ethereum’s whale vs. retail delta value of 3 suggests that whales have shown confidence in the token, with a higher stake compared to retail investors.

In conclusion, while Ethereum has faced challenges with declining network activity and price drops, there are optimistic signals indicating a potential turnaround in its fortunes. Traders and investors are closely monitoring these developments to capitalize on potential market movements.