- Ethereum fees have hit six-month lows over the past seven days.
- ETH fell by 6% and the indicator looked bearish.
As L2 becomes more popular, ethereum [ETH] Network usage has fallen sharply, reaching its lowest level in six months.
This is in line with Vitalik Butarin's 2020 roadmap, which aims to enhance scalability by offloading transactions from the mainnet.
Meanwhile, ETH bears entered the market and pushed down the price of the token.
Ethereum network activity decreases
IntoTheBlock recently posted Tweet This week highlighted the fact that ETH fees have fallen by more than 29%, plummeting to a six-month low.
The decline in ETH fees reflects the shift in activity to over 50 live Layer 2 networks. To see what’s going on with Ethereum, AMBCrypto analyzed Artemis data. data.
Notably, the blockchain's daily active addresses decreased last week, leading to a decline in overall activity on the network.
Source: Artemis
ETH daily trading followed a similar trend. Blockchain revenues also declined last week due to lower fees.
In particular, it was surprising that blockchain usage decreased when gas prices fell.Street Y chartETH gas price fell from 47.5 Gwei to 8.5 Gwei last month.
Ethereum turns bearish
While blockchain network activity has declined, its price trend has also become bearish.according to coin market capETH price has fallen by over 6% in the past 7 days.
It is trading at $2,920.99 at the time of this writing, giving it a market cap of over $350 billion.
AMBCrypto looked into Glassnode data and revealed a possible reason behind this price drop. Over the past 7 days, we have seen a decrease in the number of his ETH addresses with balances above his $100,000.
This clearly indicated that the whales were selling their holdings.
Source: Glassnode
Selling prices prevailed in the market as a whole, not just for whales. Analysis of Sentiment data points out that ETH exchange inflows have spiked twice in the last week.
In addition, the supply on the exchanges has also increased. This could indicate a sell-off and cause a price correction.
Negative price movements also had a negative impact on market sentiment. Ethereum’s weighted sentiment has declined over the past few days, suggesting that bearish sentiment around the token prevailed.
Source: Santiment
AMBCrypto then analyzed the daily chart of ETH to see if further price declines are likely to occur.
Its Relative Strength Index (RSI) was found to be below the neutral mark. The Money Flow Index (MFI) also recorded a decline.
read ethereum [ETH] price prediction 2024-25
The king of altcoins is resting below its 20-day simple moving average (SMA) at the time of writing, indicating further price decline.
ETH price has touched the lower bound of the Bollinger Bands and this could trigger a trend reversal.
Source: TradingView
