• Ethereum faces a 26% monthly decline, raising recovery concerns.
• Gas fees hit a five-year low, signaling a potential price bottom.

Ethereum has had a tough month, witnessing a 26% decline over the past 30 days, with its price dipping below the $2,111 range. Currently, the second-largest cryptocurrency is trading at $2,579, reflecting a 3% decline, and its trading volume is down by 2%. Despite this downturn, whale activity and network movements have gained momentum.

A significant shift is occurring within the Ethereum ecosystem as gas fees plummet to their lowest levels in years. Industry experts suggest that the dramatic reduction in transaction costs could signal a potential price bottom for ETH, despite concerns over reduced token burning and increased supply.

Gas fees on the Ethereum network have recently hit a five-year low, with some transactions costing less than 1 gwei (approximately $0.04). This sharp contrast to historically high fees has sparked discussions about Ethereum’s future. The fee reduction is attributed to several factors, including a sluggish market, increased adoption of layer-2 solutions, and recent network upgrades such as Dencun.

In the midst of this, an Ethereum whale has continued its profit-booking spree as ETH prices briefly rose above $2,600. Hours ago, the “diamond hand” whale sold another 15,000 ETH, raking in a profit of $40 million. The daily Relative Strength Index (RSI) stands at 39, indicating increasing selling pressure.

Can ETH Bounce Back?

The outlook for Ethereum remains uncertain. The daily chart shows Ethereum entrenched in a bearish trend, with the 9-day Exponential Moving Average at $2,611.

If bullish momentum returns, the next resistance levels are $2,879 and $3,019. However, continued bearish sentiment could see the price drop to $2,477, with potential support at $2,196.

As Ethereum navigates this challenging period, the market is closely watching for signs of recovery. Whether it can bounce back depends on upcoming market dynamics and potential shifts in investor sentiment.