Ethereum's Price Drops 12.5% Amid Network Slowdown, Awaits Pectra Upgrade

Ethereum has been experiencing a period of reduced activity, with transaction fees on the network dropping to $0.168, the lowest level since 2020. This decrease in fees indicates a significant slowdown in network activity and user engagement. Consequently, the price of ETH has struggled to maintain levels above $1,600, experiencing a 12.5% decline over the past two weeks. This price action suggests a cautious sentiment among market participants.

One of the primary reasons for this slowdown is the hesitation among retail traders, who are largely sitting on the sidelines due to market uncertainty. Recent developments, such as the U.S. tariff shake-up, have contributed to this cautious approach. Despite the current lull, historical patterns show that when retail sentiment dips but developer activity remains strong, it often sets the stage for a future rally. Ethereum's development scene continues to be active and focused, which could bode well for future price movements.

The upcoming Pectra upgrade is generating quiet anticipation within the Ethereum community. This upgrade aims to enhance network activity by improving Layer-2 speeds, enabling stablecoin gas payments, and expanding staking limits. A second phase of the upgrade later this year promises even more scalability improvements. As the Pectra upgrade approaches, market participants are closely watching ETH price movements to gauge whether the network is poised for a significant shift.

On April 17th, 2025, Ethereum's price action showed a declining trend early in the day, forming a downward channel as the Relative Strength Index (RSI) dipped into oversold territory multiple times. The Moving Average Convergence Divergence (MACD) also flashed several death crosses, indicating bearish sentiment. This bearish momentum drove prices toward the support level near $1,550. However, around 09:00 UTC, a breakout from the downtrend occurred, initiating a new moderate ascending channel. The recovery was supported by back-to-back golden crosses on the MACD and the RSI rising above the 50 mark, signaling a return of bullish momentum. ETH price tested the resistance zone near $1,610 but failed to break above it, indicating significant selling pressure at higher levels.

In recent price action, Ethereum has been climbing gradually within an upward channel, holding above short-term support near $1,580. The RSI has oscillated between neutral and overbought zones, reflecting ongoing attempts by bulls to maintain momentum. The MACD has shown several golden crosses, although the histogram is flattening out, suggesting reduced bullish strength. Despite multiple overbought readings, bears have struggled to push the price back toward support, signaling a strong defense by bulls.

Despite the current quiet period, Ethereum's next significant move might be closer than it appears. The upcoming Pectra upgrade, with its improvements in scalability, stablecoin gas options, and higher staking limits, could provide the spark needed to reignite momentum. On the charts, bulls are defending the $1,580 level well, even as ETH price struggles to break through resistance around $1,610. All signs point to a market waiting for a catalyst to move, and that catalyst could arrive with the Pectra upgrade in May.