Daily Ethereum Burn Rate Collapses to All-Time Low: Analysts Panic Cut Price Forecasts by 60%!

Ethereum’s on-chain Layer 1 activity has reported a significant dip, according to analytics, with the daily ETH burn rate reaching an all-time low of just around 50 ETH yesterday. This amount, priced at around $106,000, shows a sharp decline in demand for the Ethereum blockchain. This trend has raised severe concerns for investors and institutions alike.

The Ethereum Improvement Proposal (EIP-1559) was introduced in August 2021, designed to counter inflation by burning a small portion of the transaction fees on every transaction. But as of now, the system appears to be struggling against the decline in network activity. This reduction in the daily ETH burn rate comes along with the overall decline in Ethereum’s usage stats. Active addresses using Ethereum have sunk to an unprecedented low since late 2024. Following suit, the transaction counts and new address creations have also plummeted. These stats indicate that fewer users have engaged with the Ethereum network in the past few months.

Remarkable Low Reached, Industry Lowers ETH Expectations

In stark contrast to this low, Ethereum has witnessed much higher daily ETH burn rates in the past. For example, in September 2024, as market activity was at its height, daily burns reached up to 6,098 ETH in a day. Considering these fluctuations and upcoming challenges for the L1 Ethereum blockchain network, Standard Chartered also sliced their price forecast for ETH by 60%, from an optimistic $10,000 to only $4,000 for 2025. This correction highlights the growing competition for the Ethereum network from Layer 2 solutions that are increasingly extracting value from the Ethereum blockchain. 

Geoffrey Kendrick of Standard Chartered also mentioned that the Layer 2 platforms on the Ethereum blockchain are deriving “super profits”, hindering ETH’s efforts to mitigate the situation. As the token navigates this turbulent landscape, its future highly depends on whether Ethereum blockchain network activity can rebound and sustain proper levels. However, whether this slowdown is a temporary setback or a signal of a bigger shift remains to be seen. 

ETH Price Analysis of the Last 24 Hours: Ethereum Defies Odds

Ethereum has managed to pull a heroic climb amidst market volatility and shifting sentiments in the last 24 hours. ETH price started the day at $1981.5. With the RSI reporting oversold levels late on the previous day, a climb was expected. The upward trend eventually occurred and took ETH to $2019.72 by 10:00 UTC. ETH continued to fluctuate around that mark, finding stern resistance at $2020.47. ETH went on to make a few attempts at the resistance, but the buying pressure could not facilitate a resistance break. A downtrend ensued, leading ETH to find support at $1990. 

Chart 1: analyzed by raodevansh18, published on TradingView, March 24, 2025

ETH again seemed to fluctuate in a trading range before finding a downward breakout, taking it back to square zero, $1981. A significant golden cross formed on the MACD at 23:10 UTC, causing ETH to rise again and battle the $2020 resistance. The RSI reported overbought levels, and the price was brought back down to $1980. At 2:20 on March 24, another wide golden cross appeared as ETH started climbing again. The steep upward trend led ETH to break resistance and continue further. Strong buying pressure was seen, as the price continued to climb the token being overbought. The last update saw Ethereum at $2070.

ETH Price Prediction: Is A Correction Coming?

The buying pressure has been enough to sustain a meteoric rise. However, soon, investors may recognize the overbought situation, and the momentum may break. This will lead to a strict price correction as RSI levels return to normalcy. A death cross has already been seen on the MACD indicator, meaning ETH could spend today facing a sharp reversal. However, with the impressive performance in the past 24 hours, ETH will find a respectable support level around $2030 soon and may continue its upward journey. However, as network activity reduces, ETH price prediction depends heavily on market indicators. investors are highly recommended to watch the market closely to make informed decisions.