Is Ethereum (ETH) Price Volatility Subsiding Before Bitcoin Halving?

• Ethereum (ETH) price dipped to its 2-week low at $3.2K within the last 24-hour window.
• ETH’s 30-day realized volatility experiences a drop from 79% to 76%.
• This largest altcoin records a fear and greed index of 56, emphasizing greed.

Ethereum (ETH), the world’s second dominantly valued cryptocurrency, fumbles down to its lowest point of $3,202 in a fortnight. At the moment, the question, “Will ETH slide further to $3K?” still hangs in the air.

ETH 4H Price Chart (Source: TradingView)

As per the price chart, ETH/USDT is trapped in a downtrend with a bearish MA (moving average) cross-over — the long-term 21MA overtook the short-term 9MA. Meanwhile, the relative strength index (RSI) stood at 35, indicating the asset’s close proximity to the overbought territory.

At the time of writing, ETH traded at $3,312, after sliding 2.19% over the past day. As per CoinMarketCap, the largest alt holds a market cap of $397 billion and records a daily trading volume of $20.7 billion. 

Furthermore, analyzing the 30-day realized volatility of ETH, the levels climbed to 79.47% by the end of March according to data from Kaiko. Notably, in mid-February, it was found at 41%. Currently, the volatility has slightly dropped to 76%. 

Stepping away from ETH’s price volatility and market momentum, statistics of the Ethereum Layer-2 (L2) networks emerge with optimism. Here’s a highlight of how the L2 ecosystem’s traction: 

Ethereum L2s Reflect A Bullish Stride

Remarkably, ETH L2s have rallied to hit an all-time high (ATH) driven by the rising popularity of restaking, real-world asset (RWA) tokenization, and web3 gaming. Data from growthepie.xyz indicates that the user base on these L2s surged 11.87% over the past week, spiking the total count to 5.15 million active users.

Ethereum L2 User Base (Source: growthepie.xyz)

On the other hand, it is the growing dominance of blobs’ role in burning ETH fees. The occurrence of the Dencun upgrade on March 13 activated blobs on major Ethereum L2s. These blobs primarily reduce gas fees. As per ultrasound.money, blobs, the catalyst to reduce gas fees, have now claimed the fourth spot on the dashboard.