Ethereum (ETH) continues to underperform in the broader cryptocurrency market, currently trading just below $1,800 after falling 4% in the past 24 hours. Despite a strong start to the year, where the crypto market experienced bullish momentum, ETH has failed to sustain its upward trajectory.

Since slipping below the $3,000 level, the asset has largely ranged downward and has now breached the $2,000 support zone, signaling weakening demand and sentiment.

While Bitcoin and other major digital assets still managed to see some recovery efforts in recent weeks, Ethereum’s price decline has been accompanied by decreasing network activity and weakening on-chain fundamentals.

This divergence has raised concerns over ETH’s short-term outlook and prompted a fresh analysis of the underlying causes driving the asset’s performance.

Fee Decline and Network Inactivity Fuel Inflationary Pressures

CryptoQuant analyst EgyHash recently published a report highlighting key on-chain metrics that suggest Ethereum’s current market weakness is closely tied to its declining fee economy and user activity.

According to the report titled: “Why Ethereum Is Bleeding Value: Fee Crash Meets Hyperinflation Hellscape.” Ethereum’s network is experiencing its lowest levels of activity since 2020.

Daily active addresses have declined steadily since early 2025, and average transaction fees have dropped to record lows. This reduction in activity has led to a sharp fall in Ethereum’s burn rate, a metric crucial in offsetting inflationary pressures following the network’s transition to proof-of-stake.

The Dencun upgrade, which was expected to enhance network efficiency, has coincided with an extended period of low transaction volumes, further reducing fee income and contributing to higher net ETH issuance.

EgyHash concludes that the confluence of weak network engagement, reduced burn rate, and high token inflation is central to Ethereum’s declining valuation.

Why Ethereum Is Bleeding Value

“Ethereum’s recent underperformance can be largely attributed to diminished network activity, as evidenced by declining active addresses and reduced transaction fees.” – By @EgyHashX pic.twitter.com/fgQJYCrOIn

— CryptoQuant.com (@cryptoquant_com) April 3, 2025

Ethereum Technical Outlook Signals Potential Support

Despite on-chain headwinds, some technical analysts maintain a cautiously optimistic view. Trader Courage, a technical analyst on X, noted that Ethereum is currently testing a major support zone and could rebound toward the upper resistance of its current trading range.

$ETH / #ETH 1H chart

Back at the green support line. Looks like we could be heading towards the top of the range.

Key levels are on the chart.#Ethereum pic.twitter.com/rRX8b3b6nW

— Trader Courage (@CryptoCourage1) April 3, 2025

Another market analyst, CryptoElite, shared a long-term ascending trendline that ETH has respected historically. Based on this trend, the analyst believes ETH could still have the potential to rally to $10,000 later in the year, provided broader market conditions improve.

Featured image created with DALL-E, Chart from TradingView

Nvidia stock is currently hovering around the $101 mark on Thursday, down over 7% amid a tariff-related market crash. The stock is down nearly 20% year-to-date as well. NVDA entered 2025 trading at $138 and had also fallen to a low of $106 in March. The tech giant’s price is experiencing a slow crash as no investors made profits with it this year. If the downward trajectory continues, the leading stock could be at risk of plummeting.

CNBC analyst Jim Cramer has been no slouch in critiquing NVDA’s recent slump. The “Mad Money” host talked about the current value of Nvidia’s shares on a recent episode, laying it in on the AI chip giant. On Nvidia and Trump’s new tariff plan that have contributed to the stock’s fall, Cramer said:

“Trump’s change in attitude has terrified the moneymen — the big moneymen. Virtually overnight, they’ve decided that we’re headed for a recession, and it’s going to happen fast. The thesis is that we’re a consumer country, and they think the consumer is finished because of turmoil created by the Walmart White House. At the same time, the big themes of tech — the data center buildout and AI — seem suddenly cursed, victims of that Chinese outfit DeepSeek that has figured out a way to get more computing power from less hardware. Buyers of Nvidia’s expensive chips, see NVIDIA Corp (NASDAQ:NVDA) now trading like a meme stock. Can we just tell it like it is? It’s a meme — that’s why it’s getting crushed. Let’s not fool around — it’s a meme stock.”

In the last year, NVDA stock is up 14%. However, it was up even further at the start of the year, and an uncertain US economy contributed to the stock dropping in 2025 so far. The stock is the head of a rewarding sector for investors. Thus, some experts would contrast with Cramer, suggesting that one should buy into the NVDA crash.

Should You Buy Nvidia (NVDA) Stock Right Now?

Nvidia’s pivot toward the AI sector accelerated its stock performance from 2020 to 2024. However, the race to become the AI leader is crowded, with too many tech giants throwing their hat in the ring. From Google’s Alphabet to Amazon and Meta, every multinational corporation is eyeing the top spot to capture the next-gen technology.

Also Read: Not Bitcoin or Gold, Robert Kiyosaki Explains New Asset Could Surge 2x

Despite the last 48 hours of crashing, Wall Street is still bullish on Nvidia (NVDA). Wall Street analysts are upbeat on Nvidia’s stock performance, giving a “strong buy” rating this year. Out of the 44 financial strategists from Barchart, 38 have recommended a ”strong buy” while two suggest a “moderate buy”. Four analysts have given a “hold” call while none of them advised traders to sell the stock.

The development indicates that now could be the best time to accumulate the dips on Nvidia stock. NVDA is available at a discounted price and could also be accumulated if it falls below the $100 price range