The post Ethereum Transaction Fees Hit 4-Year Low: Will ETH Price Recover Now? appeared first on Coinpedia Fintech News Ethereum is facing a tough time as its price has dropped 55% from its December high of $4,000 to below $1,800. This sharp decline has made it one of the weakest performers among major cryptocurrencies. At the same time, transaction fees have hit a four-year low, sparking debates on whether this is a sign of reduced network activity or a potential setup for a market rebound. Ethereum Transaction Fees Hit 4-Year Low According to recent data, Ethereum transaction fees have dropped to their lowest levels in nearly four years. This sudden decline has caught the attention of the crypto community, as lower fees make transactions more affordable for users. For retail investors, who often avoid Ethereum due to high gas costs, this could be an opportunity to re-enter the market. But why is this happening now? One reason for this drop is lower network activity. Santiment data reveals that daily active addresses fell to 461,000 in mid-March from 717,000 earlier this year. Meanwhile, another factor is the growing sell pressure from long-term holders. Ethereum’s realized cap HODL wave has hit its lowest point since August 2023, showing increased sell pressure from long-term holders. At the same time, Ethereum’s layer-2 solutions, such as Arbitrum, Base, and Optimism, are gaining popularity due to lower fees and faster speeds. This has reduced demand for Ethereum’s main network, further lowering costs. If demand keeps falling, it could affect Ethereum’s long-term position in the crypto market. Ethereum Price Outlook Ethereum struggled to stay above $2,050 and dropped below $1,850, showing signs of weakness. The price is now consolidating, facing resistance around $1,850. A key technical indicator, the Relative Strength Index (RSI), is at 37 , suggesting bearish momentum is fading. Meanwhile, the Stochastic Oscillator (Stoch) has entered the overbought zone, hinting at a possible pullback. As of now, Ethereum is trading at $1,852 , reflecting a rise of 2.81% in the last 24 hours. Perhaps it showing a drop of 12% over the past week, reflecting ongoing market pressure. For ETH to regain strength, it needs to break above $2,000 and hold that level.
