Ethereum in Free Fall: How Long Will the Spiral Last?

For several months, Ethereum seems to have found itself in a downward spiral, with obvious signs of discouragement among its holders. The continuous devaluation of the price of ETH raises questions: is this relentless decline a reflection of a temporary crisis or a dark tunnel that seems never-ending? A reality of “loss” that appears today to be unavoidable, but could it hide, behind its darkness, a light, a reward at the end of the journey?

The Continuous Decline of Ethereum: Why Does It Last?

Ethereum is going through a period of turbulence, marked by four consecutive months of losses, as noted by some observers, including Jeet Shah:

It’s painful to be an Ethereum holder. But in the end, we will be rewarded!

This painful reality is reflected on the CryptoQuant platform, which attributes this long series of declines to a declining network activity. The number of active addresses continues to decrease, and transaction fees have dropped to historically low levels, exacerbating ETH inflation.

These combined factors have not only affected market perception but have also led to an inflation of the altcoin, destroying the balance between supply and demand.

The situation worsens with the reduction in the ETH “burn” rate, an initiative aimed at removing some of the circulating currency. However, after the Dencun update, low transaction fees have led to a decrease in burning, thus reintroducing inflation into the Ethereum ecosystem.

This seems to mark a turning point: while Ethereum seeks to stabilize its value, these inflationary pressures continue to play a key role in its decline.

Ethereum: An Uncertain Future, but One Full of Promises

The price of Ethereum, currently trading around $1,790, has lost more than 60% of its value compared to its all-time high. This prolonged drop could lead to a broader reflection on the resilience of the Ethereum ecosystem.

Despite the difficulties, analysts, like EgyHash from CryptoQuant, believe that a rebound in network activity, particularly with an increase in active addresses and a rise in transaction fees, could trigger a virtuous cycle.

This scenario, however, remains uncertain and depends on a restoration of market confidence.

Thus, although the coming months promise to be challenging, some firmly believe that the future of Ethereum could improve. It’s not a matter of “if”, but of “when”.

Investors hope for a turnaround where rewards will finally materialize after this dark tunnel.

As the shadow of inflation continues to loom over Ethereum, the launch of Pectra on May 7, 2025 could mark a crucial turning point for the ecosystem. This new event could bring a breath of fresh air, reinvigorating the ETH cryptocurrency. A wind of optimism may finally blow after this tunnel crossing.