Ethereum Faces Potential Price Pressure Amid Declining Demand and Bearish Divergence Signals
By: bitcoin ethereum news|2025/05/08 10:00:06
0
Share
Ethereum is showing signs of bearish divergence, with demand weakening even as prices briefly rose to $1,832. Amid shrinking gas usage and a notable exit by a major whale, concerns about Ethereum’s sustained growth are mounting. A COINOTAG report indicates a significant drop in daily active addresses (DAA), plunging to -50%, highlighting weak user growth. Ethereum’s price rebounds to $1,832, but falling gas usage and user activity raise concerns about its future strength. Is Ethereum losing steam? After hovering near 20 billion in gas usage since early February, Ethereum now faces a sharp drop back to **11.68 billion**. This **decline** indicates a slowdown in on-chain activity, raising alarms about reduced demand across **DeFi**, **NFT**, and other decentralized applications (dApps). Historically, a decrease in gas usage correlates with stagnation or bearish trends, especially in the absence of new user growth, weakening **bullish** arguments for ETH’s current price levels. Source: Santiment Additional data reveals a **7.99%** decline in mid-tier holders over the past month, contrasted by a **1.33%** increase in retail wallets and a **2.26%** rise in whale holdings. This trend suggests medium-sized investors are reducing their exposure amid uncertain conditions, while retail optimism remains relatively strong. However, the growing number of retail wallets alone may not provide the momentum needed for a sustained price rally, especially when weighed against profit-taking activities like those observed with the whale’s recent Kraken deposit. Set up for a deeper correction? Transaction activity has illustrated a stark decline across high-value brackets, with transfers above **$10 million** down **83%** and those between **$1 million** and **$10 million** decreasing by nearly **70%**. This downturn hints at waning institutional interest or a more cautious posture from large investors. Typically, significant transaction counts are associated with market-moving activity; thus, their decrease could signal reduced volatility in the near term alongside diminished upward momentum for ETH. Source: IntoTheBlock Ethereums price, at press time, hovers just above critical long liquidation clusters at **$1,815**. A drop below this level could incite cascading liquidations, thereby amplifying downside risks. Yet, short positions remain clustered above **$1,850**, creating potential for a short squeeze should buyers gain traction. This ongoing struggle between leveraged longs and shorts sets the stage for an imminent volatile breakout or breakdown in future sessions. User activity fades The bearish divergence highlighted by Santiment’s price-to-DAA metric shows a profound decline of nearly **-50%**, indicating a drop in user growth in relation to recent price trends. This significant divergence suggests that ETH’s price surges are not being supported by new address activity—often signaling a bearish market condition. Historical patterns suggest that such disconnects are precursors to sell-offs, especially when combined with fundamental weaknesses such as diminished gas usage. Source: Santiment Ultimately, despite the temporary price surge, Ethereum’s fundamentals are increasingly concerning. Diminishing gas usage, declining high-value transactions, and user activity showing a stark bearish divergence contribute to a precarious outlook. The interplay of liquidation clusters and shifts in investor demographics further applies pressure on an already delicate situation. Unless new demand emerges, Ethereum may struggle to maintain the $1,832 threshold amidst growing bearish indicators. Source: https://en.coinotag.com/ethereum-faces-potential-price-pressure-amid-declining-demand-and-bearish-divergence-signals/
You may also like

Musk Poached Aave App's Web3 Prodigy
Aesthetic is a gift.

The Petro Order is Cracking. What Comes Next for the Middle East?
Ground War Begins, or Deterrence Takes Hold

ETF Fund Inflows Emerging, What's Still Missing for BTC to Fully Recover?
The market is entering a crucial phase of equilibrium.

Forbes Special Report: The Embrace of AI Agents in the Cryptocurrency Industry
AI agents are becoming the true native users of cryptocurrency; they do not need a beautiful interface, just a wallet and a payment track. This wave of "machine commerce" may be the most rational narrative in the crypto industry for years, or it may just be another round of hype in a new bottle.

Bitpanda, Vision Web3 Foundation, and Optimism Partner to Onboard European Financial Institutions to the Global Blockchain Economy
Vision Chain aims to address the long-standing infrastructure bottlenecks in the European financial sector

What will the early Hyperliquid prediction market look like?
Unleash the Imagination Space of On-chain Finance

Overseas VC's Two-Week Trip to China AI Leaves Them in Awe of Shenzhen Hardware
Delphi Labs founder's two-week deep dive into China's AI ecosystem: More bullish on hardware than expected, more bearish on software than expected, and observations on Chinese founders that flipped his prior beliefs.

Was CZ Also Rug Pulled? BNB Treasury CEA Industries Control Battle
CEA Industries' mNAV drops to 0.68, YZi Labs personally steps in to clean up the mess

A transaction in 7 seconds, earning tens of millions of dollars, he's seen as the "cancer of meme coins."
The belief that "Day Trading Shitcoins is the Only Way to Make Money" has become their go-to strategy.

Bittensor Ecosystem Token SN Surges 5x in March, What's Behind Richard Heart's One-Liner?
What did Andrew Ng say? Did he say anything? Is Distributed AI Training Feasible?

The economy is entering a new cycle, how can the average person prepare?
The key is not how much you earn, but whether you have cash flow, low leverage, and the ability to earn consistently

Access Binance Alpha Box: Sigma.Money to Launch BNB Chain Ecosystem Yield Farming Gateway
Sigma.Money's innovation is now translating into tangible market momentum.

Kimi, Chip, and Bean come together for a Crypto Hackathon: What did AI developers build on Monad?
Monad Ecosystem AI Deployment, More Than Just a Hackathon.

How to Trade Crypto on Mobile Browser & Win LALIGA Tickets (2026 Guide)
Discover how AI automation, natural language trading, and mobile browser trading platforms are shaping automated trading in 2026. Join the WEEX live trading event for early access and rewards like LALIGA VIP tickets.

Connecting encryption, TradFi, and payments, is Gate completing the final puzzle of the "super APP"?
Why is it said that TradFi is not a short-term narrative?

a16z Crypto Operating Partner: Wall Street is undergoing its biggest infrastructure upgrade in 30 years
What is currently happening is the largest infrastructure upgrade in the capital market since the rise of electronic trading thirty years ago.

a16z Crypto's latest research: What is the key to the large-scale application of DeFi?
The widespread adoption of on-chain financial applications still faces an invisible barrier: the lack of transaction order certainty. Under a single leader architecture, nodes can delay, censor, or even front-run user transactions, thus completely distorting the game among market makers, bidders, an...

Founder of Delphi Labs: My observations and feelings about the AI ecosystem in China in two weeks
Delphi Labs co-founded a deep observation of China's AI ecosystem: hardware manufacturing is quietly winning the global war at an astonishing speed, but the software sector is mired in an overvaluation bubble and the homogenization of founders.
Musk Poached Aave App's Web3 Prodigy
Aesthetic is a gift.
The Petro Order is Cracking. What Comes Next for the Middle East?
Ground War Begins, or Deterrence Takes Hold
ETF Fund Inflows Emerging, What's Still Missing for BTC to Fully Recover?
The market is entering a crucial phase of equilibrium.
Forbes Special Report: The Embrace of AI Agents in the Cryptocurrency Industry
AI agents are becoming the true native users of cryptocurrency; they do not need a beautiful interface, just a wallet and a payment track. This wave of "machine commerce" may be the most rational narrative in the crypto industry for years, or it may just be another round of hype in a new bottle.
Bitpanda, Vision Web3 Foundation, and Optimism Partner to Onboard European Financial Institutions to the Global Blockchain Economy
Vision Chain aims to address the long-standing infrastructure bottlenecks in the European financial sector
What will the early Hyperliquid prediction market look like?
Unleash the Imagination Space of On-chain Finance
