Ether fell following Bitcoin at the end of last week. The largest crypto fell below $43,000 and ETH pulled back below $3,000. Now, ETH is trading at $2,875.
The activity on the Ethereum network has been weakening over the past few days. According to EtherScan, the average daily number of transactions on the ETH blockchain fell on February 13 to 1.114 million.
According to a report from Santiment, the weakening demand for transactions has led to a drop in fees for their processing. Ethereum fees are now at their lowest level since July 28, 2021 ($2.61).
However, experts still remain optimistic despite the ETH retreat. According to them, the stagnation in the network is always replaced by a surge in activity, which should have a positive impact on the price of the altcoin.
One of the factors stimulating a change in trend is a reduction in the market supply of an asset.