The cryptocurrency market experienced severe downward pressure in March, and Ethereum (ETH) was one of the cryptocurrencies that suffered the most. The price of the cryptocurrency fell to its lowest level in two years, caused by a decline in network activity and an increase in supply.

As we enter April, the main question for investors is whether ETH can stop its downward trend. One of the main reasons for the decline in Ethereum prices has been the decline in network activity. Cryptocurrency data shows that the number of active addresses in Ethereum has experienced a steady decline since the beginning of 2025.

Also, the average transaction fee has reached its lowest level, which has reduced the ETH burning rate. Since Burning Ethereum plays a significant role in reducing its supply, reducing this process has increased inflationary pressure on the network and negatively affected the price.

Cryptocurrency analysts emphasize that poor Ethereum performance can be directly attributed to reduced network activity. The decline in active addresses and the fall in fees, coupled with higher inflation rates, have exacerbated the downward trend of the digital currency.

Currently, the price of Ethereum has reached the range of 1,800, which has experienced a drop of more than 60% compared to its peak in the current market cycle. However, some analysts believe that Ethereum's inflation rate of 0.73 percent remains low compared to the past, and does not raise major concerns for investors.

The future of Ethereum depends on market sentiment and macroeconomic trends. If network activity increases and investors are attracted to the asset again, a relative improvement in price can be expected. Otherwise, Ethereum may still remain under sales pressure.