ETH Drops Below $1,600 as Ethereum Fees Crash to a five-year Low—Can Pectra Push It to $1,700?

Ethereum is going through a quiet patch, starting to show. Ethereum network activity has dropped significantly, with transaction fees sinking to just $0.168, their lowest point since 2020, according to Santiment. That’s a major red flag for user engagement. With fewer participants and little need to bid for faster transactions, momentum has cooled. ETH Price has struggled to hold above $1,600 and posted a 12.5% dip over the past two weeks, making it clear that caution rules the current sentiment. But sometimes, a lull like this can be the calm before a surprise breakout.

Retail Steps Back, but the Story Isn’t Over

One big reason for this slowdown? Retail traders are mostly watching from the sidelines. Market uncertainty, especially following the recent U.S. tariff shake-up, has led to hesitation. ETH Price has tested key support zones multiple times, adding to the jitters. Still, there’s a pattern: when retail sentiment dips but developer activity stays strong, we often see a setup for a future rally. And Ethereum’s development scene remains active and focused.

Pectra Upgrade Could Be the Spark Ethereum Needs

With the Pectra upgrade just around the corner, quiet anticipation is building. The update aims to supercharge Ethereum network activity by improving Layer-2 speeds, enabling stablecoin gas payments, and expanding staking limits. A second phase later this year promises even more scalability. As Pectra approaches, all eyes are turning to ETH Price movement, and whether it’s gearing up for a shift.

ETH Price Action Analysis of April 17th, 2025

Ethereum traded within a declining range early on, forming a downward channel as RSI dipped into oversold territory twice while the MACD flashed multiple death crosses. This bearish sentiment drove prices toward the support level near $1,550. However, a breakout from the downtrend occurred around 09:00 UTC, initiating a new moderate ascending channel. The recovery was reinforced by back-to-back golden crosses on the MACD and RSI rising above the 50 mark, indicating a return in bullish momentum. ETH Price tested the resistance zone near $1,610 but failed to break above it, suggesting significant selling pressure at higher levels.

Chart 1, Analyzed by Alokkp0608, published on April 17th, 2025

In the most recent price action, Ethereum has climbed gradually within an upward channel, holding above short-term support near $1,580. The RSI has oscillated between neutral and overbought zones, reflecting ongoing attempts by bulls to maintain momentum. MACD has shown several golden crosses, although the histogram is flattening out, hinting at reduced bullish strength. Despite multiple overbought readings, bears have struggled to push the price back toward support, signaling a strong defense by bulls.

Ethereum’s Next Big Move Might Be Closer Than It Looks

Ethereum’s been unusually quiet lately, with low fees, light Ethereum network activity, and traders taking a step back. But that doesn’t mean it’s out of the game. On the contrary, this kind of pause often comes before something more significant. The upcoming Pectra upgrade could be precisely what ETH needs to spark fresh momentum. With improved scalability, stablecoin gas options, and higher staking limits, Ethereum is getting a serious boost under the hood. On the charts, bulls are defending the $1,580 level well, even as ETH Price struggles to crack resistance around $1,610. All signs point to a market waiting for a reason to move, and that reason might just arrive in May.

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