Is Ethereum Quietly Building for a $2,500 Breakout? Here’s What to Watch

The Ethereum price transactions have reached their lowest point since 2020, and many users are considering future developments in the cryptocurrency market. The data from Santiment reveals that users must now pay just $0.168 for each Ethereum transaction, but this drop came alongside reduced blockchain utilization. Users observe the declining Ethereum fees as proof of network stabilization, but they generate doubts about potential adoption impediments and value considerations. 

Ethereum’s Fee Drop: A Result of Reduced User Activity?

The substantial drop in Ethereum network costs stems directly from a general decrease in blockchain utilization that produces reduced transaction activity while lowering the usage of smart contracts. The Marketing Director at Santiment, Brian Quinlivan, explained that Ethereum price and transaction speed positively correlate to user activity levels. When numerous people engage with Ethereum, users compete to pay higher fees for faster transaction processing. The current low transaction rate enables users to minimize their bids. The rising shortage of demand against supply leads to lowered fees, as current observations demonstrate.

Chart 1- ETH Average Network Fee Per Transaction, provided by Santiment, April 17, 2025.

The Ethereum network operates less crowdedly because retail investors have diverted from the ecosystem, and fees have dropped substantially. Worldwide economic uncertainty and the unpredictability of U.S. tariff markets contributed significantly to Ethereum Activity’s decrease. Crypto observers track fee changes to determine if a market lull exists or if users plan significant changes after markets become stable.

Pectra Upgrade: Can It Revive Ethereum’s Network Activity?

The Upcoming Pectra upgrade for Ethereum will take place on May 7, 2025, to create solutions for transaction fees and network congestion issues. The first stage of the Pectra upgrade implementation will establish a new layer-2 blob capacity, which increases transaction efficiency while accepting payments in USDC and DAI stablecoins. The network engineering changes are predicted to reduce user costs while restoring increased network use to Ethereum.

Chart 2- ETH Fees Burnt in USD, provided by Santiment, April 17, 2025.

Activation of Pectra will boost institutional investor engagement through its enhanced 2,048 ETH maximum staking limit, which goes above the previous 32 ETH limit. A new data structure will be implemented through the second stage of the upgrade during late 2025 or early 2026 to enhance Ethereum’s capacity to scale. When the Ethereum network becomes more efficient, it will likely experience increased participation from retail and institutional users, triggering a potential growth in activity.

Is Ethereum Price Poised for a Comeback?

The present time offers a favorable outlook for Ethereum due to its DeFi and blockchain-based application foundation and upcoming platform updates, despite minimal transaction costs. Lower transaction fees will make the Ethereum network operate more efficiently and create conditions for users to return and for new users to participate.

Chart 3- Ethereum Price Chart, provided by Emmaculate, published on TradingView, April 17, 2025.

Currently, the Ethereum price is resilient, holding above the $1600 mark. The bulls are building strength, aiming to break above the descending channel toward the $2000 mark. However, the bearish prospects are still evident, as the ETH price trades below key moving averages. The Ethereum price could drop toward the $1526 mark if the bears gain stamina. 

On the upside, if the bullish momentum builds, a flip above the $1904 resistance mark will open the doors to further upside. In such a case, the Ethereum price could retest the $2000 mark, and in a highly bullish scenario, the $2500 level. 

What’s Next: Is the Future of Ethereum Bright Despite the Current Lull?

The apparent drop in Ethereum’s fees and user activity should be evaluated within the larger context of the situation. The network is implementing major upgrades, which hold the potential to produce new growth opportunities and enhanced system use. The Pectra upgrade stands out for its ability to decrease costs and achieve better scalability, which prepares Ethereum to reach new user groups.

Despite the uncertain market, Ethereum’s long-term success seems likely based on its enduring strength and continued development process. Investors should observe the upcoming Pectra enhancement in Ethereum alongside users because it represents an opportunity for the market to demonstrate renewed activity and grow in value.