Ethereum Price Nearing Key Buy Zone? Watch This Level Closely

Ethereum (ETH) is nearing a critical support level around its $1,585 realized price, a zone that has historically sparked major bullish reversals

This price range has acted as a key indicator during past periods of long-term accumulation. When Ethereum has dropped to or below this level, buyers have often returned gradually.

Realized Price Approaches Critical Threshold

Ethereum has slipped below $1,600, down from earlier highs in 2025. Current conditions suggest that the market may be entering a cooler phase. At the same time, the asset is moving toward a range that has previously attracted long-term holders.

A CryptoQuant contributor shared a chart on April 17 showing Ethereum nearing its realized price. “In every major rally, Ethereum has been near this zone before bouncing back,” the contributor wrote.

Source: CryptoQuant

Ethereum may test the $1,450 to $1,550 if prices continue downward. That band has acted as a floor during several previous corrections. Meanwhile, Ethereum could face resistance around $1,670 and again at the $1,930 level if momentum shifts.

Transaction Fees Hit Multi-Year Lows

Ethereum’s network activity has slowed, with average transaction fees now down to their lowest level since 2020. According to Santiment, the average cost is just $0.168 per transaction.

Santiment commented, 

“When activity drops off this much, it’s often followed by a surprise move the other way.” 

While fees have dropped due to reduced congestion, this is not always a bearish signal. Similar fee declines have often occurred near local market bottoms.

🚨💸 BREAKING: Ethereum fees are at a 5-year low, with transactions currently costing just $0.168. This is the cheapest daily cost of making $ETH transfers since May 2, 2020. We briefly break this down in our latest insight. 👇https://t.co/fg5CfRgsHn pic.twitter.com/QlLwyzdm1F

— Santiment (@santimentfeed) April 16, 2025

The fee drop coincides with the effects of Ethereum’s Dencun upgrade in early 2024, which increased scalability through data blobs. The trade-off, however, has been a sharp drop in revenue from layer 1 gas fees.

Value Capture Shifts to Other Networks

Ethereum’s role as the primary value layer has come under pressure. Following the upgrade, more users have migrated to faster and cheaper layer 2 solutions. As a result, fee generation on the Ethereum base layer has slowed.

A Binance Research report from April 16 noted that “Ethereum is no longer capturing the same level of fees it did before the upgrade.” Competing platforms like Solana and BNB Chain have gained market share due to more active usage and lower fees.

Despite this, Ethereum continues to lead in terms of network security. Its validator count exceeds 1 million, far surpassing newer chains like Celestia and EigenLayer, which have fewer than 200 nodes.

Market Awaits Clearer Economic Direction

Ethereum’s latest decline mirrors growing caution across the crypto space, driven by worries over inflation, interest rates, and global trade tensions.

Santiment reported that many traders are waiting for more direction before moving back into the market. This cautious behavior, combined with macro uncertainty, has kept Ethereum’s price under pressure for now.

However, if the realized price level holds, Ethereum could again find support, as it has during earlier cycles. Traders and long-term holders continue to monitor the $1,585 zone for signs of stabilization.