ETH, the native cryptocurrency of the Ethereum network, fell over 2% during Wednesday’s market session to currently trade at $1,560. While the broader market shows signs of a relief rally amid United States President Donald Trump’s openness to negotiate new trade deals, ETH continues to lag behind.
The altcoin’s underperformance has plunged its network fee to a multi-year low, signaling a potential impact on price movement.
Ethereum Network Fees Drop to Lowest Level Since 2020
April 16, 2025 — Ethereum transaction fees dropped to their lowest point since May 2020, now averaging just $0.168 per transaction. This marks a five-year low in network costs amid reduced usage and waning trader enthusiasm.
The decline in gas fees stems from lower demand on the Ethereum network, as confirmed transactions shrink during a period of broader market cooling. Santiment analysts note that fewer users are competing to validate their transactions, leading to a natural drop in average fee rates.
This fee collapse coincides with the Ethereum price correction, which recorded a 61% decline in the past four months. However, the lowered fees offer a window of opportunity for builders and developers still active in the ecosystem and can offer a great time to get cost-effective value.
While a low translation fee does not guarantee bottom formation, a simultaneous drop in network activity has often preceded low-resistance rallies.
ETH Price Faces 18% Drop with Wedge Pattern, but There’s a Catch
For over a week, the Ethereum price has traded sideways, struggling to sustain above the $1,700 resistance. The daily chart shows multiple short-bodied candles with rejection wicks on either side, indicating no clear dominance from buyers or sellers.
However, the formation of falling wedge patterns continues to influence the ETH price, signaling a potential drop underway. As the coin price witnesses overhead supply at the resistance trendline, the ETH price could plunge over 18% to seek support at the lower frame.
As the ETH coin edges close to the wedge pattern apex at every turn, the price is poised for a decisive breakout. A successful flip of the overhead resistance into potential support will signal a change in market dynamics and set the asset up for a leap above $2,100.
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