Despite being considered very expensive, Ethereum blockchain It continues to be one of the world’s top networks of cryptocurrency dynamics. However, major blockchains are undergoing major changes as overall transaction fees plummeted to levels not seen in years.
Total transaction fees at the lowest level for several years
While the crypto sector is being shaken by volatility, Ethereum Recent developments on the network’s overall transaction fees have made it a hit. Over time, ETH gas prices have become more difficult to use, as their high costs have hindered user activity.
Recent Reports from Crypto Miners, Binance affiliates, reveal Its use of Ethereum networks has slowed down, indicating a suppressed demand for block space. Lower fees reflect a decline in demand, but also mean that the overall ETH ecosystem will slow down momentum.
Crypto Miners said that ETH transaction fees It has fallen to its lowest level since 2020, reaching its lowest level in four years. This lower transaction fees are consistent with a sign of a decline in on-chain activity and a decline in crowding throughout the ecosystem. This development can affect user engagement, Defi activity, and NFT transactions, particularly blockchain-dependent validators.
Using data from market intelligence and on-chain platform IntotheBlock, Crypto Miners highlighted that fees fell by about 60% in the first quarter of 2025, down to just $208 million by April 4th.
According to the platform, a notable factor for the sudden drop is the Dencun update, which has significantly reduced the cost of the layer 2 solutions, particularly the base, and the scaling layer. the current, 2-pack of layers Currently, only the base is derived, processing over 80 transactions (TPS) per second, solidifying its position in space.
During this period of weak network demand, Ethereum prices plummeted dramatically to previous levels of support. As reported by Crypto Miners, altcoinThe first quarter of 2025 marks the worst first quarter performance ever since 2022.
The ETH/BTC pair further shows weak performance, dropping to its lowest level in five years. But in many cases, large investors called whales are not deterred, attracting ETH below the $1,800 level with a phenomenal show of support.
ETH Price Pullback Next Major
As volatility intensified, an on-chain analyst named MAC_D has identified key price levels for ETH. With a quick take post On the CrytoQuant platform, experts emphasized that the average cost base (realized price) for Ethereum Holders is at $2,200. This makes it seem that most ETH owners are currently losing money.
On the other hand, the average cost base is Whale Holding ETH over 100,000 is $1,290, which is Altcoin’s next major support level. If Ethereum falls below this level, we believe MAC_D could not fall below $870. This level was held firmly during the June 2022 Luna Crisis. Forms low ETH Signals rebound.
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