Why Ethereum’s Price is Stuck: A Tragicomedy in Four Acts 🎭

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Ah, dear Ethereum (ETH) investors, how you must suffer! For 25 long days, the price has languished beneath the illustrious $2,000 mark, while other altcoins frolic in the fields of prosperity. Yet, our beloved Ethereum remains as stagnant as a forgotten pond, and four charts shall reveal the tragic reasons for this lamentable state of affairs. 🥲

Let us embark on a delightful exploration of why the ETH price is ensnared in this quagmire, guided by four on-chain metrics from the ever-reliable CryptoQuant.

  1. Declining Ethereum active addresses.
  2. A drop in total fees burnt.
  3. A decline in fees burnt per transaction.
  4. An uptick in the total supply of ETH post-Merge.

Ethereum Active Addresses Plummet

One cannot help but notice that the price of Ethereum has failed to ascend due to a most tragic lack of interest from investors. The number of active addresses has plummeted from a robust 600K to a mere 300K. When the investors’ enthusiasm wanes, so too does the flow of capital, leaving ETH’s performance as lackluster as a poorly written play. 🎭

Fees Burnt Declines

Adding further weight to Ethereum’s dismal narrative is the decline in fees burnt. These fees, which once incentivized validators or stakers, now resemble a ghost of their former selves, indicating a rather pessimistic outlook for the price. 😱

With fewer investors gracing the Ethereum blockchain with their presence, it is only logical that the total fees burnt have dropped from a once-mighty 10K to a paltry less than 100. How the mighty have fallen!

Moreover, the fees burnt per transaction have also plummeted from nearly $80 to a laughable less than $0.1. These signals suggest a decline in interaction with the blockchain, particularly due to the fierce competition from Solana. Thus, while SOL price soars close to $300, ETH remains shackled to the ground. 🥴

Increase in Total Supply of ETH

The final nail in this proverbial coffin is the increase in the supply of ETH post-Merge activation. The supply has swelled from 120M to 120.6M, with 600K ETH added since April 2024. A veritable feast of supply, yet the appetite for Ethereum remains decidedly absent. 🍽️

With a lack of investor interest and an increase in supply, the price of Ethereum is bound to suffer. To add insult to injury, Bitcoin‘s price is also collapsing, further complicating ETH’s plight. The worsening macroeconomic conditions have cast a shadow over the crypto markets, leaving Ethereum in a state of despair. 🌧️

Thus, the outlook for Ethereum’s price prediction remains as bleak as a rainy day in London, and it shall continue to be so until the aforementioned fundamentals decide to improve. Until then, dear investors, we must endure this tragicomedy together. 🎭

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2025-04-04 14:39