Ethereum Faces ‘Hyperinflation Hellscape’—Analyst Reveals Key On-Chain Insights
Ethereum (ETH) is trading below $1,800, having fallen 4% in the past 24 hours, continuing its downward trend since slipping below $3,000. The asset has breached the $2,000 support zone, indicating weakening demand and sentiment. Unlike Bitcoin and other major cryptocurrencies that have seen some recovery, Ethereum's price decline is linked to decreasing network activity and on-chain fundamentals. A report by CryptoQuant analyst EgyHash highlights that Ethereum's fee economy and user activity are declining, with daily active addresses at their lowest since 2020 and average transaction fees at record lows. This has resulted in a reduced burn rate, increasing inflationary pressures post-proof-of-stake transition. Despite these challenges, some technical analysts suggest potential support for ETH, with hopes of a rebound toward higher resistance levels and a long-term rally possibility to $10,000 if market conditions improve.
