• Ethereum network fees are hitting rock bottom – a five-year low, actually – signaling a slowdown in network activity.
• But wait, the RSI indicator is hinting at a possible comeback! Can ETH smash through that critical resistance and kickstart a full-blown bull run?

Ethereum’s [ETH] network is experiencing something pretty interesting: transaction fees have plummeted to their lowest point in five years! This drop suggests that things have quieted down on the network a bit, and that could have some interesting implications for its price. Now, it’s not necessarily a red alarm for a crash, but it does suggest that the underlying activity on the Ethereum network might not be as robust as it was.

However, before you jump to conclusions, take a look at the Relative Strength Index (RSI). It’s flashing some signals that suggest a potential bullish reversal might be brewing. The big question is: can Ethereum overcome some key resistance levels under these conditions and actually ignite a full-scale bull market? Let’s dive in.

Key resistance amid potentially shaky ground

Right now, Ethereum is hovering around $1,886 – a 6% jump from its recent two-day low, a level we haven’t seen in over four months. Adding to the intrigue, we’ve seen a significant 23.52% surge in trading volume, reaching $15.64 billion. Could this be a classic case of savvy investors ‘buying the dip’? It certainly looks like it could be.

Looking at the technical indicators, things are starting to lean bullish. The MACD has just turned positive, the RSI is bouncing upwards, the ETH/BTC pair is in positive territory, and if you check out CryptoQuant, you’ll see buy orders are dominating perpetual contracts.

Putting it all together, these signs are pointing towards $1,750 potentially being a temporary bottom for ETH, with a solid chance of a strong recovery from here.

Source: Coinalyze (ETH/USDT)

However, let’s not get ahead of ourselves and call it a bull run just yet. For true FOMO (fear of missing out) to grip the market, ETH needs to maintain this positive momentum in the days to come. In today’s high-risk environment, the possibility of losing this newfound support is still very real.

To really understand the situation, consider this: Ethereum’s network fees have plummeted to a five-year low of just $608K. That’s a massive drop from the $18 million we saw during the rally back in November 2024 – a clear indicator of weaker demand. This decline in fees lines up with ETH’s price taking a 53% hit over the very same period.

Taking into account multiple bearish signals alongside these sharp price drops, it’s clear ETH needs stronger fundamental drivers and a decisive break above a key resistance level. Without these, simply holding onto its current price might be a tough battle.

Breaking THIS level: The real test for ETH’s strength

Market analysts are pointing to $2,100 as the crucial resistance level Ethereum needs to conquer to confirm a sustained bullish breakout. If it can’t hold above this mark, we could easily see a deeper price correction.

Our own analysis at AMBCrypto suggests that a successful break above this barrier could push a staggering 12.36 million ETH into profitable territory. This unlocks a significant $26 billion in value, showing just how much is riding on this level.

Source: IntoTheBlock

Even with these potentially bullish technical signals, the underlying weak demand and lack of a supply squeeze make it uncertain whether ETH can actually reclaim that $2,100 level. Realistically, the challenge isn’t just breaking through $2,100; it’s about demonstrating staying power and holding firmly above it.