Ethereum Gas Fees Decrease by 95%, Price Drops 1.29% to $1,883 Amid Bearish Sentiment

Ethereum, a leading cryptocurrency, experienced a 1.29% price decline on Thursday, settling at $1,883.3. This decrease comes amidst a challenging market environment and ongoing technical issues surrounding the Pectra upgrade. Despite achieving a notable 95% reduction in gas fees, Ethereum’s price struggles to maintain its value.

Macro-economic uncertainties have had a significant impact on Ethereum’s valuation, with a staggering 52.8% drop since December 2024. Currently, the price is consolidating within a range of resistance at $1,960 and support at $1,840, supported by the 100-period EMA on the 4-hour timeframe. Breaking above the resistance could signal a move towards the $2,000 mark, while breaching support levels could lead to further declines, potentially revisiting the $1,755 support floor.

Ethereum has been underperforming against Bitcoin, as evidenced by the ETH/BTC pair’s weekly relative strength index (RSI) falling to an oversold 23.32. This decline has been ongoing since 2017, resulting in an 85% loss for Ethereum against Bitcoin. Despite these challenges, improvements in network efficiency have been made, with a significant reduction in gas fees by 95% following the Dencun upgrade. However, this achievement has not translated into a price surge, with Ethereum’s value actually decreasing by 53% post-upgrade.

Looking ahead, the Pectra upgrade aims to enhance network capabilities but has faced technical difficulties during testnet deployments. While developers do not consider these issues catastrophic, they underscore the ongoing challenges in maintaining network stability. Analysts see a potential for a bullish reversal, citing historical data indicating oversold levels that have historically signaled buying opportunities. Additionally, the accumulation of Ethereum by large investors suggests confidence in the current price as an entry point. Regulatory developments, such as the SEC’s consideration of staking in spot Ethereum ETFs, and progress on the Pectra upgrade could act as catalysts for a potential price recovery in the future.