18.02.202509:13 Forex Analysis & Reviews: Bitcoin and Ethereum Remain Under Pressure

Ethereum has made attempts, but Bitcoin has decided it's had enough. The longer Bitcoin (BTC) remains below the $100,000 mark, the greater the likelihood of a decline toward the $90,000 area, where recent months have seen significant trading activity. We'll delve into the technical outlook later.

It's important to note that the number of transactions on the Bitcoin network has dropped to 330,000, reaching a 12-month low. This is a considerable decrease from the peak of 730,000 transactions recorded earlier, marking a 55% decline in network activity. This shift highlights a notable change in how the Bitcoin network is being utilized. Over the past month, transaction fees have stabilized at around $500,000, which is significantly lower than the elevated levels observed during periods of heightened network activity prior to the end of 2024.

The decline in Bitcoin-based protocols, such as Runes and Ordinals, is particularly noticeable. Initially, these protocols attracted significant speculative interest and network activity, according to experts. Functioning similarly to ERC-20 tokens and NFTs on Ethereum, they now represent only about 1% of the total transaction volume. Over the past 30 days, Runes' fees have dropped to less than $20,000, a significant decrease from the $60 million generated on its launch day.

Market dynamics have shifted speculative trading activity toward other blockchain ecosystems. The current transaction levels raise questions about Bitcoin's network utilization and the sustainability of transaction fees. With protocol activity declining and fees stabilizing, the network seems to be reverting to its primary functions of payment and money transfers. Whether this trend is sustainable will depend on the ability of new Bitcoin-based protocols to attract users again. This is essential for building a robust long-term ecosystem, especially as block rewards continue to decrease.

While it is difficult to determine the direct impact on Bitcoin's price, the decline in fees clearly reduces miners' revenues, which could create negative market sentiment.

Bitcoin Technical Outlook

Buyers are currently targeting a return to the $96,200 level, which would open the path toward $97,400. From there, it is just a step away from $98,800. The final upside target would be the $100,200 resistance, a breakout of which would signal a return to the medium-term bull market.

In the event of a BTC decline, buying interest is expected to be around $95,100. A drop below this level could quickly send BTC toward $93,900; from there, the $92,700 support is within reach. The ultimate bearish target would be the $90,600 zone.

Ethereum Technical Outlook

A clear breakout above the $2,683 level would pave the way toward $2,733. The ultimate upside target is the annual high near $2,803, and a breakout above this level would confirm a return to the medium-term bull market.

In a correction, buying interest is expected to be around $2,630. A drop below this level could quickly push ETH toward $2,558, with the final downside target at $2,490.