Ethereum price- Will Ethereum’s price fall below $3,000 soon?

Ethereum price- Could Ethereum’s price soon drop below the $3,000 mark?

Ethereum price- Ether is having a hard time holding its ground in the market, with its long-term chart showing a significant bearish signal.

Is Ethereum’s value set to drop below $3,000?

ETH’s daily candle closed below the 200-day moving average (200-DMA), a pattern that historically precedes market corrections.

On the flip side, spot Ether ETFs saw a net inflow of $26.7 million on August 1, providing a small glimmer of hope for the ecosystem.

Ethereum transaction fees have drastically fallen since March

In the first quarter of 2024, Ethereum’s average daily fees exceeded $10 million, with March seeing an average as high as $15 million per day. However, since the beginning of Q2, the annualized average fee has significantly decreased to around $3.5 million, and July’s total revenue fell below $3 million.

Despite a stable number of weekly active users over the past six months, Ethereum has experienced a 39% drop in month-on-month annualized fees.

This decline is mainly attributed to a reduction in the total value locked (TVL) in Ethereum since May, reflecting decreased DeFi activity. According to DefiLlama, over $10 billion in TVL has been lost since June 7.

Since March, Ethereum fees have seen a steep decline

According to data from IntoTheBlock, approximately 3.69 million addresses hold about 1.24 million ETH, which equates to roughly $3,000. This price point represents both an immediate and psychological support level for Ethereum.

However, this support is considered relatively weak compared to the critical level at $2,700. At this lower range, around 11.11 million addresses hold a substantial 59.07 million ETH, with an average acquisition price of $2,647. Historical chart patterns reveal that ETH has consistently bounced back almost immediately whenever it falls below $3,000 in the past three months, indicating robust demand in this price zone.

The charts also show that equal lows have formed around the $2,700 mark. Considering the current data and technical analysis, another potential bounce at the $2,650 to $2,700 range is quite likely. Therefore, it would not be surprising if Ether rebounds quickly from below $3,000 once more. This bidding range introduces a new dynamic and potential shift in market structure, but additional consolidation at these levels could lead to a reversal from previous equal lows.

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