Ethereum drops below $1,800 amid slumping activity and macroeconomic pressures

Ethereum has tumbled below $1,800, posting a 4% daily loss and a steep 16% monthly drop. According to CryptoQuant, ETH's decline reflects both macroeconomic pressures and weakening network activity, with active addresses dwindling and transaction fees plummeting.

The Dencun upgrade—which added support for blob transactions and significantly lowered fees—reduced ETH burn rates. This has weakened Ethereum's deflationary mechanism established during its transition to Proof-of-Stake consensus, pushing the network back into inflation.

The ETH burn rate has plunged to its lowest level since the Merge upgrade, intensifying downward price pressure and sparking investor concerns. Analysts warn that without a recovery in on-chain activity, Ethereum may keep lagging behind Bitcoin and other top-tier cryptocurrencies.

ETH faces mounting pressure from external factors, including the US tariff announcement. As investors’ risk appetite wanes, Ethereum is seeing accelerated selling pressure. The asset has now shed over 60% of its $4,000 all-time high, CryptoPotato reports.