Ethereum Price Approaches $1,585: Key Support Level Analysis

Ethereum (ETH) nears a critical support level at $1,585, a historical bullish reversal zone. Current conditions suggest market cooling, with potential declines testing $1,450-$1,550 and resistances at $1,670 and $1,930. Transaction fees have reached a five-year low at $0.168 due to decreased network activity. Ethereum’s scalability upgrade has prompted user migration to cheaper platforms while maintaining security dominance with over 1 million validators. Market caution persists amid macroeconomic uncertainty.

Ethereum (ETH) is approaching a significant support level around its realised price of $1,585, historically associated with major bullish rebounds. This price range has proven crucial during past accumulation periods, as buyers typically re-enter the market when the asset falls to this level, indicating a potential for reversal.

Currently, Ethereum has dipped below $1,600, a decline from earlier highs in 2025, signalling a cooling market phase. The asset is nearing a range that has attracted long-term holders in the past. A chart shared by a CryptoQuant contributor highlighted this trend, noting that prior rallies closely traced this support zone.

Should the price continue to decline, Ethereum may test the range between $1,450 and $1,550, which has functioned as a price floor during previous corrections. Conversely, resistance is anticipated around $1,670 and $1,930 if market momentum shifts positively.

Transaction fees on the Ethereum network have fallen to their lowest levels since 2020, with the average fee reported at just $0.168 per transaction. Santiment indicated that such significant drops in activity typically precede surprise market movements. Although the fee reduction stems from decreased congestion and lower demand, it has historically coincided with market bottom formations.

The recent drop in fees also aligns with Ethereum’s Dencun upgrade in early 2024 aimed at enhancing scalability. However, this has resulted in a notable decline in revenue from layer 1 gas fees as user migration to more efficient layer 2 solutions increases, with platforms like Solana and BNB Chain attracting a larger user base due to their competitive pricing.

Despite challenges in capturing traditional fee revenues, Ethereum still maintains leadership in network security, boasting over 1 million validators compared to emerging chains with significantly fewer nodes. As Ethereum’s price decline mirrors broader market caution from concerns over inflation and economic stability, many traders are currently holding back. Observing the $1,585 realised price will be crucial as it may indicate a stabilisation point for Ethereum.