Why is the Ethereum Price Falling Even More? The Pressure Could Get Worse! - Coin Bulletin

The drop in Ethereum (ETH) price may deepen due to low activity on the network, decreasing transaction fees, and high inflation.

The recent loss of value of Ethereum is worrying many investors and a further price drop is expected. According to a CryptoQuant analyst, the decrease in Ethereum’s price is due to factors such as weakening network activity and a significant reduction in transaction fees.

CryptoQuant analyst points out that the most significant reason for the drop in Ethereum price is the declining activity on the network. Since the beginning of the year, there has been a continuous decrease in the number of active addresses, while average fees per transaction have also dropped to record levels. This led to a decline in transaction volume on the network and caused Ethereum to lose value. Additionally, the burning rate dropping to its lowest levels after the Merge update and the Dencun update increasing inflationary pressures contributed to the further erosion of Ethereum’s value.

CryptoQuant analyst emphasizes that these negative developments in Ethereum will continue to pull the price down further. Low burn rate and high inflation rates are keeping the price of Ethereum under pressure. Therefore, it is stated that network data should be monitored closely in order to better analyze Ethereum’s future price movements and potential recovery strategies.