Ethereum Price Crashes Below $3,000 As Revenues Drop To New Lows
August 03 2024 - 4:00PM
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Ethereum (ETH) recently dropped below the critical and
psychological support level at $3,000, raising concerns for ETH
bulls. This development comes amid the continued decline in revenue
generated on the Ethereum network. Related Reading: Crypto Analyst
Warns That Bitcoin Could Crash To $42,000 If This Happens Ethereum
Crashes Below $3,000 Ethereum is down below $3,000, with this
downtrend believed to be due to several factors. One is the
outflows, which the Spot Ethereum ETFs have been experiencing since
they began trading on July 23. Data from Farside Investors shows
that these funds again experienced a net outflow of $54.3 million
on August 2. These funds haven’t had the desired impact on
ETH’s price that they were expected to have, with Ethereum down
over 10% since they began trading. Data from Soso Value shows that
these funds have suffered cumulative net outflows of $510.7 million
since they launched. Grayscale’s Ethereum Trust (ETHE) has been
individually responsible for these outflows, with $2.12 billion
flowing out of the fund since its launch. This has put
significant selling pressure on ETH, leading to its recent
downtrend. ETH’s price has also dropped below $3,000 thanks to the
downtrend in the broader crypto market led by Bitcoin. Ethereum was
bound to suffer a significant decline following Bitcoin’s drop as
data from the market intelligence platform IntoTheBlock shows that
both assets currently have a strong price correlation.
Ethereum’s drop below $3,000 is undoubtedly worrisome for
investors, considering how much lower it could drop. However, ETH
has quickly reclaimed the $3,000 level these past three months
whenever it drops below this crucial support zone. As such, this
time may not be any different, especially with data from
IntoTheBlock indicating a strong demand for Ethereum at this price
level. If Ethereum fails to hold this range, the
second-largest crypto token risks dropping to as low as $2,700, a
more crucial support zone for ETH considering that 11.11 million
addresses bought the token at an average price of $2,647.
Ethereum’s Revenue Drops To New Lows Data from Token
Terminal shows that Ethereum’s revenue has dropped to new lows,
down by 40.4% in the last 30 days and 44.8% annually. Fees earned
on the network have not been impressive either. Over the last 30
days, Ethereum users have paid $92.97 million in fees, a 32.8%
decline and 38.3% at an annual rate. This drop in Ethereum’s
revenue and fees can be attributed to the decline in the network’s
active daily users. Further data from Token Terminal shows a 9.8%
drop in Ethereum’s monthly active users. The same goes for the
weekly and daily active users, with 20.1% and 15.3% drops,
respectively. Related Reading: ARB Market Plummets 14%, But New
Developments Could Reverse The Trend At the time of writing,
Ethereum is trading at around $2,979, down over 5% in the last 24
hours, according to data from CoinMarketCap. Featured image
from Pexels, chart from TradingVIew
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