Ethereum transaction fees have plummeted below 1,000,000 USD for the first time in five months, with a notable drop of 731,000 USD. This decrease raises concerns regarding reduced demand for ETH as short selling increases.

The total supply of Ethereum has risen steadily since April 2024, countering expected deflationary effects post-Merge. Heightened competition from new cryptocurrencies and layer-2 networks is further stressing ETH’s market positioning.

Record levels of short-selling indicate deepening bearish sentiment toward Ethereum. Despite institutional interest in ETH ETFs, which attracted over 500 million USD, ETH’s price has remained stagnant amid uncertainty about regulatory decisions.