Ethereum fees drop to 5-year low: What else is blocking ETH’s $2k breakout?

• ETH network fees have dropped to a five-year low, pointing to reduced network activity.
• The RSI shows signs of reversal – can ETH break key resistance and trigger a full bull run?

Ethereum’s [ETH] network fees have dropped to a five-year low, pointing to reduced network activity, which could impact its price. While not a direct bearish signal, the fee decline suggests weaker on-chain fundamentals. 

However, the Relative Strength Index (RSI) shows signs of bullish reversal. Can ETH break key resistance and spark a full bull run under these conditions?

Key resistance amid weak fundamentals

Ethereum is trading at $1,886, up 6% from its lowest point in two days, a level not seen in over four months. With a 23.52% surge in volume to $15.64 billion, this could signal a classic ‘dip-buying’ opportunity.

Technical indicators are turning bullish: the MACD has flipped positive, the RSI is moving upwards, ETH/BTC is in the green, and buy orders dominate perpetual contracts.

These factors suggest $1,750 could be a local bottom for ETH, with strong rebound potential.

Source: Coinalyze (ETH/USDT)

However, a bull run is still premature. For FOMO to kick in, ETH needs to hold this pattern in the coming days. With high-risk sentiment, losing support remains a real possibility.

Ethereum’s network fees have dropped to a five-year low of $608K, down from $18M during the November 2024 rally—signaling weak demand. This aligns with ETH’s 53% price drop in the same period.

With multiple bearish signals and sharp pullbacks, ETH needs stronger fundamentals and a key resistance breakout. Without them, holding its current price may be a challenge.

Breaking THIS level: The security signal for ETH

Analysts highlight $2,100 as a critical resistance Ethereum must reclaim to sustain a bullish breakout. Failure to hold above this level could trigger a deeper correction.

AMBCrypto’s analysis shows that breaching this barrier would push 12.36 million ETH into profit, putting $26 billion at risk.

Source: IntoTheBlock

Despite bullish technicals, weak demand and the absence of a supply shock make reclaiming this level uncertain. In fact, the key test isn’t just breaking $2,100 – but holding above it.