Global trade uncertainties, capital shifting towards gold, and geopolitical tensions continue to pressure cryptocurrency prices.
Among these, Ethereum 
$1,594, the largest altcoin, has entered a noteworthy phase due to these market conditions and the rise of Layer-1 competitors. Recently, network fees have dropped to their lowest levels in five years, raising speculation that this decline might pave the way for a new bullish run for Ethereum. Recent statements from Federal Reserve Chairman Jerome Powell emphasized the ongoing economic rift between the U.S. and China, causing investors to seek safer assets. Under these circumstances, the Ethereum network finds itself at a significant technical threshold.
Record Drop in Ethereum Network Fees: $0.16
According to Santiment data, the average transaction fee on the Ethereum network has decreased to $0.168, marking the lowest level since May 2020. On the same day, the network’s daily average transaction cost was recorded as the cheapest in five years. This drop could serve as an important signal for both users and developers. 
Ethereum Network Fees
In recent years, the increasing use of competitor Layer-1 networks like Solana 
$133 has intensified pressure on Ethereum. Nevertheless, the core development team led by Vitalik Buterin has implemented significant network improvements. Updates such as the London hard fork (EIP-1559), The Merge, Dencun, and the latest Pectra have made Ethereum more efficient while increasing transaction capacity.
Despite these technical advancements, low transaction fees may also indicate market apathy. However, some experts agree that these levels present strong buying opportunities in the long run.
Signs of Reversal in Ethereum’s Price
Since December 2024, Ethereum has been on a downward trend, potentially testing bottom levels, according to technical analysts. Notably, expert Benjamin Cowen suggests that the current price movement resembles a fractal structure from the 2020-2021 bull cycle. This similarity supports optimistic expectations for long-term investors.
Santiment’s on-chain data indicates a strong support line forming at the $1,528 level. At this price point, 2.61 million wallets have accumulated a total of 4.82 million ETH. This solidifies both the price’s bottom threshold and indicates potential groundwork for an upward movement.
Additionally, open positions for ETH, which have been declining since the year’s beginning, are showing signs of recovery. Analysts predict that, in the short term, the price of the altcoin could rise again to the $2,100 level. Such a rise in Ethereum, which serves as a compass for the altcoin market, could also act as a driving force for the overall market.