4-4-2025 – Ethereum, the second-largest cryptocurrency by market capitalisation, finds itself grappling with significant headwinds that have pushed its valuation to levels not witnessed since autumn 2023.
The digital currency’s latest market performance has raised eyebrows across the trading community, as it dipped beneath the crucial $1,760 threshold, sparking fresh concerns about its immediate trajectory. The breach of this key support level has left market participants pondering the possibility of extended downward pressure.
Network metrics paint a particularly sobering picture, with blockchain analytics firm CryptoQuant revealing a marked downturn in user engagement since January. The platform’s active addresses have plummeted to multi-month lows, whilst transaction fees have descended to unprecedented depths, substantially diminishing Ethereum’s token-burning mechanism.
Market watchers observed notable price volatility during Friday’s trading sessions, with the cryptocurrency oscillating between $1,760 and $1,835. Technical resistance, manifested through the 50-hour and 100-hour exponential moving averages, proved insurmountable at the $1,835 mark, triggering a subsequent retreat.
The recent announcement of potential tariffs by former President Trump sent shockwaves through the market, catalysing a sharp reversal from the $1,955 level. This development pushed the four-hour Relative Strength Index below 40, suggesting mounting bearish sentiment.
The deteriorating fundamentals, coupled with dampened network activity, have created a challenging environment for Ethereum. The cryptocurrency’s net supply has expanded due to reduced burning rates, creating additional downward pressure on its market value.
Market analysts suggest that Ethereum’s immediate fate hinges upon its ability to defend the $1,760 support zone. A definitive breach could expose the asset to further valuation pressures, whilst a convincing move above $1,835, supported by robust trading volumes, might signal the beginning of a recovery phase. However, the absence of renewed network vigour could continue to weigh on market sentiment.
