Ether Holds Above $2,000 Despite Ethereum Network’s Transaction Burns Hitting Record Low – Retail Sentiment Divided

Ethereum’s native token, Ether (ETH), was trading just above $2,000 during U.S. trading hours on Monday, rebounding alongside Bitcoin, despite Ethereum's network posting one of its lowest 24-hour revenues in months. 

The decline in transaction activity sent daily burns to a record low.

The second-largest cryptocurrency by market value gained 3.5% in the past 24 hours, while Bitcoin rose 3.1% to just under $87,500, according to CoinGecko data.

Data shows Ethereum’s transaction burn mechanism saw just 50 ETH removed from circulation on Sunday, marking a record low and a sharp drop from the all-time high of 71,000 ETH burned on May 1, 2022. 

Since early 2023, daily burns have gradually declined, typically ranging from 500 ETH to over 3,000 ETH.

Ethereum's burn system, introduced in August 2021 with the EIP-1559 upgrade, removes ETH from circulation by destroying some of the base fees paid for transactions. 

Lower burns indicate reduced network activity, which has slowed recently as traders migrate to cheaper alternatives such as Solana (SOL) and Tron (TRX). The decline also reflects a broader downturn in speculative trading since late January.

Etheruem (ETH) retail sentiment and message volume on March 24 as of 8:40 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Ether improved to ‘neutral’ from ‘bearish’ a day ago. 

One user noted that Ether continues to struggle with resistance at $2,000.

Another user predicted that ETH could break past $2,100 before the end of the day.

Ethereum’s token has climbed over 9% in the past week but has experienced a significant decline over the past three months, dropping more than 51% from its 52-week high above $4,100 in December 2024.

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