At the end of last week, ether (ETH) again fell in price following bitcoin. BTC fell below $43,000, and the leading altcoin pulled back below $3,000.
On the night of Monday, February 14, ETH is trading at $2,880.
Network activity on Ethereum has been weakening over the past few days. According to the EtherScan service, the average daily number of transactions on the ETH blockchain fell on February 13 to 1.114 million.
The weakening demand for transactions has led to a drop in processing fees, the Santiment team said in a report. Ethereum fees are now at their lowest since July 28, 2021 ($2.61).
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However, researchers remain optimistic despite the ETH retreat. According to their forecasts, stagnation in the network is always replaced by a surge in activity, which should have a positive impact on the value of the altcoin.
One of the factors stimulating a change in trend is a reduction in the market supply of an asset.
According to the IntoTheBlock platform, since the beginning of January 2022, users have withdrawn 453,890 ETH from exchanges, and another 470,798 ETH have been burned. It is these data that should warm up the demand from investors and change the trajectory of the cryptocurrency movement soon, analysts say.