Ethereum recovery attempt fades as EMA caps upside amid active addresses decline
Ethereum struggles below $1,760
Ethereum's price trajectory has been characterized by persistent declines and unsuccessful recovery attempts.
On Thursday, ETH breached the critical $1,760 support level, briefly reaching $1,750, a price last observed in October 2023. This decline marked a fresh three-year low, intensifying concerns about Ethereum’s vulnerability to further depreciation.
Subsequent trading sessions have reflected continued volatility. On Friday, April 4th, ETH fluctuated within a range of $1,760 to $1,835 during Asian and European trading hours. However, resistance from the 50-hour and 100-hour exponential moving averages (EMAs) limited upside momentum at $1,835. This resistance led to a reversal during the North American session, causing Ethereum to retest the $1,760 support before rebounding to $1,785, amounting to a 1.7% daily decline.
ETH price dynamics (March - April 2025). Source: Tradingview
Ethereum active addresses at the lowest level in months
Beyond price action, Ethereum’s market weakness is compounded by deteriorating network fundamentals. Data from CryptoQuant highlights a steady decline in active addresses since the beginning of the year. Simultaneously, transaction fees have dropped to record lows, significantly reducing Ethereum’s burn rate. The diminished burn rate has increased ETH’s net supply, amplifying downward price pressure.
The $1,760 support level remains a pivotal threshold for Ethereum. A decisive break below this level could trigger further downside, potentially exposing ETH to additional losses. Conversely, a move above $1,835, accompanied by higher trading volume, may signal the potential for recovery. However, without a resurgence in network activity, Ethereum is likely to remain under pressure in the near term.
Ethereum hit $1,955 but reversed sharply after Trump’s tariff announcement. The reversal pushed the 4-hour RSI below 40, signaling bearish momentum.
