- Ethereum price drops below $1,800 as active addresses fall to 333K.
- ETF outflows hit $2.36B, adding to bearish market pressure.
- Triple-top pattern signals potential Ethereum decline to $1,000.
Market fundamentals deteriorate further while Ethereum’s price falls under $1,800 continuing its negative trajectory. Financial experts predict that the cryptocurrency will likely experience a substantial decline to approach the $1,000 level.
Ethereum Faces Further Decline as Active Addresses and Fees Drop
On-chain data highlights reduced activity in Ethereum through lower active address counts and declining burn rates and transaction fees which points to decreased asset demand. Active Ethereum addresses decreased to 333,000 from 575,000 since January which demonstrates declining network participation.
The reduction in Ethereum’s burn rate has resulted in weaker deflationary pressure. TokenTerminal data reveals that Ethereum’s network revenue is now $222 million while remaining behind Uniswap, Solana, Tron, and Tether.
Ethereum used to be the leader in transaction fees until market dynamics shifted during the recent downturn. Ethereum’s fundamental problems together with overall market losses have made its price projections even more worrying.
ETF Outflows and Market Sentiment Add to Bearish Pressure
Ethereum exchange-traded funds (ETFs) have recorded persistent outflows, adding to selling pressure in the market. Reports indicate that Ethereum ETFs witnessed outflows of $403 million in March, bringing the cumulative figure to $2.36 billion. Bitcoin ETFs have seen consistent inflows resulting in more than $36 billion entering the market since January of the previous year.
The expanding separation between Bitcoin and Ethereum functionalities has caused investor apprehension. Following Donald Trump’s imposition of fresh tariffs, financial markets experienced yet another decline.
Growing fears of a recession and inflationary pressures have made investors more wary of risky assets. Ethereum faces challenges because the market sentiment shifts while traders show reluctance to anticipate recovery.
Technical Indicators Suggest Ethereum May Drop to $1K
Technical analysis shows bearish patterns that may result in Ethereum price declines. The weekly chart now shows a triple-top formation which indicates a possible breakdown. The trading pattern from March to December of last year displayed three peaks near the $4,045 point and established its neckline at $2,130. The price of Ethereum breached the critical support level which validates the current bearish market perspective.
The Average Directional Index (ADX) shows the trend strength and has reached 30 which proves strong downward momentum. Financial experts calculate that the gap from the triple-top peaks to the neckline indicates Ethereum’s price may drop an additional 50%. Based on these calculations Ethereum’s price may decrease to $1,000 which represents a 42% fall from present market levels.
A price recovery to $2,500 would be possible if the price rose above $2,130, challenging the current adverse mindset. Ethereum is predicted to continue its downward trend near $1,000 due to deteriorating fundamentals and consistently poor technical indications.
As a result of persistent ETF withdrawals, dwindling fees, and dwindling network activity, Ethereum is still under pressure. The triple-top pattern on the weekly chart strengthens the case for further downside, with analysts warning of a potential drop to $1,000. Broader economic uncertainty and weak fundamentals suggest that Ethereum’s recovery may be uncertain in the near term.
