#Ethereum✅

Ethereum Price: Here’s the Real Reason ETH Is Falling

Ethereum had a hard time expecting anything because its price was close to testing its all-time high, and CryptoQuant has an explanation for that.

Ethereum still seems to be the underdog when it is supposed to breakout.

The cryptocurrency has several features which include the deflationary pressure hurting its price.

There is still a mix of optimism around ETH for a potential longer-term price breakout.

Ethereum’s price

1,785.00 USD

ETH Ethereum has struggled after a recent recovery in the market, including on a macro level. On-chain data suggests ETH is facing low network activity, declining transaction revenues, and inflationary pressures due to the Dencun upgrade.

Infamously, all of these factors are expected to excessively lower Ethereum's price and delay its long expected recovery with optimism.

Reasons for ETH drop by CryptoQuant

CryptoQuant has suggested a number of reasons for Ethereum’s continued decline in the market. The analysts platform highlights the persistent decrease of active addresses as something that stopped recently.

This metric has continued to drop ever since January 2025. The decline in users translates to a reduced need for the asset which in turn slows hardware activity on the network.

Another worrying concern is that Ethereum’s transaction fees have been at an all-time low. On-chain analytics show that the average fee for every transaction and for every block has been at its lowest.