Ethereum Price on the Edge: Will $3,000 Support Hold?

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Ethereum Price on the Edge: Will 3,000 Support Hold?

YEREVAN (CoinChapter.com) — Ethereum (ETH) is under pressure as its price struggles to stay above $3,000. Since the approval of spot Ether ETFs, the cryptocurrency has dropped 10% in value. Open interest has also declined by over $250 million in the past 24 hours.

On August 1, spot Ether ETFs reported a net inflow of $26.7 million. However, Ethereum’s price closed below the 200-day moving average (200-DMA), a key technical level. When Ethereum falls below the 200-DMA, it has often led to further declines.

*ETH/USD on 1-day chart. Source: Trading View*

ETH’s Daily Fees Plummet as DeFi Activity Declines

Ethereum’s on-chain data shows a significant drop in average daily fees. In the first quarter of 2024, the network generated over $10 million daily. By March, this number reached $15 million per day. However, since the second quarter, daily fees have fallen below $3 million. This represents a 39% decrease in annualized fees, indicating a slowdown in network activity.

*Ethereum daily fees and active users (weekly) chart. Source: Token Terminal*

The number of weekly active users has remained stable over the past six months. However, the total value locked (TVL) on the Ethereum network has dropped. DefiLlama reports that over $10 billion in value has been lost since June 7. This decline reflects a decrease in DeFi activity on the platform.

Ethereum Faces Critical Support Test at $2,700 Amid Bearish Signals

The $3,000 level is an important support zone for Ethereum. According to IntoTheBlock, around 3.69 million addresses hold 1.24 million ETH at this price. However, the support at $2,700 is stronger, with 11.11 million addresses holding 59.07 million ETH, acquired at an average price of $2,647.

Ethereum addressesing holding ETH. Source: intotheblock

This $2,700 level has been tested as support several times recently, including in early July. Crypto trader Poseidon commented,

“It was a bearish retest indeed. It looks awful in the lower time frame. I don’t see any reason why we shouldn’t go below $2700. Patience.”

Technical charts show Ethereum has consistently bounced back after falling below $3,000 in the past three months. Equal lows around $2,700 suggest another possible bounce, especially if ETH dips to the $2,650–$2,700 range. However, the market is closely watching these levels to see if support holds.