3-4-2025 – Ethereum, the titan of the cryptocurrency realm and second only to Bitcoin in market stature, finds itself navigating treacherous waters. A cocktail of dwindling network vitality, hefty sell-offs by major investors, and creeping inflation has cast a shadow over its once-bright prospects. As analysts sound the alarm—some even whispering of a catastrophic 91% plunge—the question looms: can this digital darling claw its way back from the brink?
A network in the doldrums
The heartbeat of Ethereum’s ecosystem—its bustling network activity—has slowed to a worrying murmur. CryptoQuant’s seasoned trader EgyHash has spotlighted this decline as the root of the currency’s woes. Since the year dawned, the tally of active addresses has been on a relentless downward slide, dragging transaction fees into the abyss with it. Blockchain records paint a stark picture: average fees per transaction and block have slumped to unprecedented lows, sapping the profitability for validators who keep the system ticking. This malaise, EgyHash warns, is eroding the very foundations of Ethereum’s value.
Yet, there’s a glimmer of context worth noting. Across the Pond, British crypto enthusiasts recall the heady days of 2021, when Ethereum’s network thrummed with decentralised finance (DeFi) fever. Today’s lethargy stands in sharp contrast, prompting local analysts to ponder if regulatory shifts—like the UK’s cautious embrace of crypto under the Financial Conduct Authority—might indirectly stifle global uptake.
Whales dive for the exits
Compounding the unease, Ethereum’s biggest backers—those colossal investors dubbed “whales”—are swimming away in droves. Santiment’s data unveils a staggering exodus: over a mere fortnight, these titans offloaded 760,000 ETH, a haul valued at roughly $1.42 billion. In the past five weeks alone, whale activity has nosedived by 63.8%, a seismic shift that’s rattling nerves. Should this retreat persist, market watchers fear a cascading sell-off could shove Ethereum deeper into the mire.
Inflation creeps In
Once hailed for its deflationary flair, Ethereum’s mechanism to torch transaction fees and trim supply is faltering. Post-Dencun upgrade, the burn rate has shrivelled to its feeblest since the shift to proof-of-stake, leaving the currency’s supply to swell unchecked. This inflationary drift, born of tepid network use, threatens to kneecap its price further. EgyHash cautions that without a revival in activity and fees, Ethereum’s economic moorings could slip, anchoring its value in perilous territory for the foreseeable future.
From this angle, the $ETH / $BTC trading pair could be heading to 0.0020! pic.twitter.com/6kbCwP5krT
— Ali (@ali_charts) April 2, 2025
The dreaded 91% plunge
Crypto sage Ali Martinez has unfurled a chilling prophecy, peering into the ETH/BTC charts with a furrowed brow. He spies a double-top pattern—a harbinger of doom when inverted—that could herald a 91% tumble against Bitcoin. Currently perched at 0.02153 BTC (translating to $1,766), Ethereum might crater to a mere 0.0020 BTC if this bearish blueprint unfolds. For holders, such a fall would be nothing short of cataclysmic.
A fragile hope amid the gloom
Yet, all is not lost. Ethereum teeters above a crucial $1,800 support line, and a flicker of resilience could yet spark a rally. Should it mirror Bitcoin’s knack for bouncing back, it might breach the $1,900 and $1,950 barriers, offering a lifeline to battered investors. The road to redemption, though, hinges on a resurgence of network vigour and a return of faith from the market’s heavy hitters.
