Ethereum’s Slow Uptrend Persists, but Is It Losing Its Market Edge?

February 21, 2025 by Mutuma Maxwell

• Ethereum retested key support levels, including the 200-week EMA, and bounced back, keeping its bullish structure intact.
• Ethereum’s transaction fees have dropped to multi-year lows, improving network efficiency and making the blockchain more competitive.
• ETH is priced at $2,804.55, and it has gained 2.24% in the last 24 hours and 3.32% over the past week.

Ethereum (ETH) recently retested key support levels, including the 200-week exponential moving average (EMA), and bounced back, maintaining its overall uptrend structure. Despite the slow movement, market analysts remain divided on the cryptocurrency’s future trajectory, with some expecting a significant rally while others caution against potential downside risks.

Ethereum’s Uptrend Remains Intact

Crypto analyst CryptoJelle noted that ETH recently took out its lows, tested a critical trendline, and rebounded. According to his analysis, the slow-moving uptrend remains intact, suggesting bullish momentum despite the sluggish pace. He believes bears will struggle to defend the $4,000 resistance level once again, indicating potential for further price appreciation.

Meanwhile, EGRAG CRYPTO provided a contrasting view, questioning Ethereum’s potential in the current cycle. His analysis suggests that Ethereum may underperform compared to other cryptocurrencies, with a maximum Fibonacci target between $6,000 and $8,000. He pointed out that Layer 2 scaling solutions have diverted significant value away from Ethereum’s main network, making alternative Layer 1 blockchains more attractive.

Ethereum’s Transaction Fees Hit Multi-Year Lows

MikybullCrypto analyzed Ethereum’s transaction fees, revealing a significant decline in costs. According to data from The Block, the 7-day moving average of Ethereum fees has reached its lowest levels since 2020. This marks a sharp contrast to the peak bull markets of 2021 and 2022 when fees exceeded $40-$50 per transaction due to network congestion from DeFi activity and NFT trading.

Source: X

Since mid-2022, ETH fees have gradually decreased, driven by market corrections, its transition to proof-of-stake (The Merge), and increased Layer 2 adoption. By early 2025, network efficiency has improved, significantly reducing transaction costs for users. This could enhance Ethereum’s competitiveness and attract greater adoption.

Market Performance and Technical Indicators

ETH is currently priced at $2,804.55, reflecting a 2.24% gain in the last 24 hours and a 3.32% increase over the past week. With a circulating supply of 120 million ETH, its market capitalization stands at $338.18 billion.

ETH/USD daily price chart, Source: Trading view

Technical indicators present a neutral-to-bullish outlook. The Relative Strength Index (RSI) is at 47.90, suggesting neutral momentum with room for further upside. Additionally, the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover, signaling potential upward movement.

ETH Derivatives and Liquidations

According to Coinglass data, ETH’s derivatives market has experienced notable activity. Trading volume surged by 25.79% to $28.18 billion, while open interest increased by 4.16% to $25.76 billion. Options volume also rose 7.15% to $688.55 million, though options open interest declined by 6.07% to $6.62 billion.

Liquidation data indicates that short positions suffered greater losses, with total rekt amounts reaching $47.77 million over 24 hours. Short liquidations totaled $33.99 million, while long positions faced relatively smaller losses.