What’s Going on With Ethereum? Hint: It’s Not Great 🤦‍♀️

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Well, folks, it looks like Ether (ETH) isn’t having its best day. Or week. Or even year, really. The ol’ “digital silver” is pulling a bear flag move on its daily chart—a fancy way of saying it’s giving off strong “I’m going down” vibes. Oh, and as if that wasn’t enough, transaction fees are at historic lows. Is this the start of ETH’s one-way ticket to $1,200-ville? 🚨

Ethereum’s Network Goes On a Coffee Break ☕

In case you missed it, Ethereum’s price had a meltdown worthy of a bad reality show plot twist. Blame it on former President Donald Trump (because why not); his tariff threats stirred things up, dragging Ethereum from $3,432 (January 31) to a 16-month low of $1,750 (March 11). Ouch. Somebody cue the sad trombone. 🎺

Sure, ETH rebounded a smidge—about 18%. But let’s be honest, folks, breaking above $2,000 is starting to feel like me attempting yoga: “not happening anytime soon.”

Meanwhile, Ethereum’s daily transaction count has slumped lower than my motivation to work out, hitting levels unseen since October 2024. And yes, that’s before Trump’s last election drama. Coincidence? I think not. 🕵️‍♀️

Transaction Count Drops

Want salt in that wound? Ethereum’s average transaction fees are now at $0.46. That’s barely enough to cover a gumball these days. 😬

ETH Fees at All-time Low

So yeah, fewer transactions and lower fees = less demand = ETH feeling sad and unloved. Not exactly the “DeFi boom summer camp” vibes we had in 2021, when fees went sky-high and everyone was trading like it was their side hustle. 🙄

ETH Supply: Now With Extra Inflation! 🎈

Okay, let’s talk about burning—but not in a fun, “let’s make s’mores” way. ETH’s burning rate has fallen to… um, let’s call it embarrassing levels. According to Ultrasound.money, that rate is sitting at a measly 25,000 ETH/year right now. Translation: instead of getting rid of ETH, we’re producing more of it. Cue inflation. 🎉

The projected annual growth rate is now 0.76%, which means 945,000 ETH is being issued every year. That’s like throwing a welcome party for inflation and then giving it a key to the penthouse. 🏢

Ethers Supply Inflation

Remember how we all cheered for the Merge? Simplified: Ethereum stopped being a miner-powered monster and finally started its proof-of-stake phase, which cut down on inflation. But here we are, back to pre-Merge supply levels. It’s like doing a juice cleanse just to binge on pizza right after. 🍕

ETH Supply Over Time

Bear Flags and Bottom Feels 🐻

Now here’s the kicker: Ether’s pulling what’s known in the biz as a “bear flag” pattern. And no, this isn’t cute like waving a flag at a sports event. A daily close below $2,000 would set the stage for a tumble down to $1,230. Yep, that’s a 40% drop—kind of like when you realize your new haircut wasn’t a good idea after all. 💇‍♂️

Bear Flag Pattern

But hey, it’s not all bad. Some optimists (we call them “those people”) think ETH could still make a comeback. Analyst Jelle says breaking back above $2,200 could be a “monster deviation.” Not sure what that is, but it sounds like something The Rock would star in. 💪

Meanwhile, Crypto Ceaser (can you take that name seriously?) claims Ethereum’s “heavily undervalued.” Sure, buddy, but I also think my dog could’ve been a model. Doesn’t mean it’s happening. 😂

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2025-03-25 16:41