Ethereum, the world's second-largest cryptocurrency, has seen its price dip below $3,200 amid reduced network activity. Recent data shows Ethereum's median gas price hitting a three-year low, standing at just 6.43 gwei as of April 27, signaling a significant decrease in transaction fees on the network.

This drop in gas fees, now hovering around 5 gwei, reflects a continuing trend of declining prices on the Ethereum network. Historically, fluctuations in transaction fees have mirrored market sentiment, often spiking during bull markets and returning to normal levels during downturns.

With the recent market retracement, diminished demand and reduced network strain could hasten Ethereum's recovery, according to reports from Santiment. Despite failing to breach the $3,400 resistance level, Ethereum has found support around $3,165, with bullish activity evident.

However, Ethereum faces resistance below $3,220 and the 100-hourly Simple Moving Average, suggesting a potential downside if it fails to surpass the $3,210 resistance level. Initial support is expected around $3,180, followed by a stronger support zone near $3,165. A breach below the crucial $3,070 support could lead to further losses, potentially down to $2,880.

Additionally, hopes for a spot Ethereum ETF approval are dwindling as the SEC expresses interest in discussing the investment product. As Ethereum's price action remains uncertain, market participants are closely monitoring these developments for clues about its future trajectory.