YEREVAN (CoinChapter.com) — Ethereum (ETH) is under pressure as its price struggles to stay above $3,000. Since the approval of spot Ether ETFs, the cryptocurrency has dropped 10% in value. Open interest has also declined by over $250 million in the past 24 hours.
On August 1, spot Ether ETFs reported a net inflow of $26.7 million. However, Ethereum’s price closed below the 200-day moving average (200-DMA), a key technical level. When Ethereum falls below the 200-DMA, it has often led to further declines.
ETH’s Daily Fees Plummet as DeFi Activity Declines
Ethereum’s on-chain data shows a significant drop in average daily fees. In the first quarter of 2024, the network generated over $10 million daily. By March, this number reached $15 million per day. However, since the second quarter, daily fees have fallen below $3 million. This represents a 39% decrease in annualized fees, indicating a slowdown in network activity.
The number of weekly active users has remained stable over the past six months. However, the total value locked (TVL) on the Ethereum network has dropped. DefiLlama reports that over $10 billion in value has been lost since June 7. This decline reflects a decrease in DeFi activity on the platform.
Ethereum Faces Critical Support Test at $2,700 Amid Bearish Signals
The $3,000 level is an important support zone for Ethereum. According to IntoTheBlock, around 3.69 million addresses hold 1.24 million ETH at this price. However, the support at $2,700 is stronger, with 11.11 million addresses holding 59.07 million ETH, acquired at an average price of $2,647.
This $2,700 level has been tested as support several times recently, including in early July. Crypto trader Poseidon commented,
“It was a bearish retest indeed. It looks awful in the lower time frame. I don’t see any reason why we shouldn’t go below $2700. Patience.”
Technical charts show Ethereum has consistently bounced back after falling below $3,000 in the past three months. Equal lows around $2,700 suggest another possible bounce, especially if ETH dips to the $2,650–$2,700 range. However, the market is closely watching these levels to see if support holds.
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