A recent report by Markus Thielen of Matrixport on July 9, 2025, sheds light on an intriguing phenomenon in the cryptocurrency landscape. Despite Ethereum’s transaction fees plummeting to unprecedented lows, with fees dropping from 36 Gwei since April 2024, the second-largest altcoin by market cap has sustained robust pricing. Even against the backdrop of fluctuating between $1,400 and $3,800, Ethereum’s price has remained stable, sparking interest in the crypto community.
What is Driving Ethereum’s Price Stability?
In March, Ethereum underwent a network update leading to almost negligible gas fees. Despite significant fluctuations indicated on the price curve, Ethereum’s price has held firm, showcasing the altcoin’s enduring strength. This stability emerges despite muted fundamentals traditionally associated with transaction fees.
How Do Institutional Forces Influence Ethereum?
The strength of Ethereum’s price cannot solely be attributed to network activity. Institutional interest plays a pivotal role, with some corporations embracing Ethereum as a treasury asset. Additionally, the majority of stablecoin transactions still occur on the Ethereum network, preserving its critical functionality.
Thielen emphasizes that the ongoing negotiations regarding the “GENIUS Act” in the U.S. bolster Ethereum’s institutional significance. Furthermore, the month of July has historically been favorable for Ethereum, further contributing to its price resilience.
Investment guidelines suggest ETH investors looking to safeguard their positions use the $2,500 level as a key strategic point for stop-loss measures.
“The market’s reaction indicates that Ethereum’s value is being upheld by factors beyond mere transaction activity,” Thielen remarked.
Key insights are:
- Ethereum’s gas fees decreased from 36 Gwei to near-zero levels since April 2024.
- Despite low fees and network activity, Ethereum’s price stable between $1,400-$3,800.
- Institutional adoption and stablecoin demand on Ethereum fuel its price stability.
- Seasonal patterns add buoyancy to Ethereum’s current performance.
Ethereum’s ability to maintain its value amid atypically low fees illustrates the resilience and complexity of market dynamics. The blend of institutional interest, key legislation, and seasonal trends paints a compelling picture for Ethereum’s current and future trajectory.
