Can NFTs Rescue Ethereum as Price Drops Below $1,900?

• The prices of Ethereum’s popular NFT collections have recently been declining.
• Ethereum’s on-chain metrics were bearish, suggesting that investors must wait for another price pump.
• ETH bulls and bears are currently battling to flip each other as the token struggles to cross $1,900.

Ethereum Price Drops Below $1,900

Ethereum’s [ETH] price has dropped below the $1,900 mark after a brief bull rally last week. This is despite investor confidence in ETH remaining high as its non-zero address count reached an all-time high.

Decline in NFT Marketplace Activity

The state of Ethereum’s NFT ecosystem seems to have been dwindling for some time now, with top collections like Bored Ape and CryptoPunks witnessing a considerable decrease in their floor prices. Messari’s recent tweet also pointed out that there has been a 29% decrease in their floor prices. In addition, CRYPTOSLAM data revealed that Ethereum’s total number of NFT sellers has declined over the past month and Dune data showed that both new and old buyers have been decreasing since March 2021.

On-Chain Metrics Bearish

ETH’s on-chain metrics looked bearish as well with CRYPTOSLAM indicating a decline in sales volume over the last 30 days. However, Santiment noted an increase in trade volume while noting a decrease in supply on exchanges and an increase in supply elsewhere.

Bulls vs Bears Battle

As ETH bulls and bears battle it out to flip one another, investors must wait for another price pump before investing further into the token.

Will NFTs Help?

It remains uncertain whether or not NFTs will help save Ethereum from its current state as the number of sellers continue to decline amidst bearish market conditions.