As a crypto investor, I’ve noticed that Ethereum (ETH), the world’s second-largest cryptocurrency, has been under selling pressure lately. The price has dropped below $3,200, and Ethereum network indicators like gas fees suggest a lack of activity.
Recently, the value of Ethereum (the second largest cryptocurrency in the world) has been decreasing and is currently below $3,200. Additionally, data from Ethereum’s blockchain suggests that transaction fees on the network have dropped dramatically, implying reduced usage.
Ethereum Gas Fee Drops to 3-Year Low
According to the latest figures from Dune Analytics, Ethereum’s median gas price has achieved a significant accomplishment, dropping to its lowest level in three years. Specifically, on April 27, the median gas price reached 6.43 gwei, making it the seventh least expensive single-day gas price observed during the past three-year period.
Currently, Ethereum Gas fees are approximately 5 gwei, indicating a declining trend in gas prices across the Ethereum network.
In the realm of cryptocurrency trading, there have consistently been two extreme perspectives among traders regarding their future value: the hopeful viewpoint that prices will soar to unprecedented heights (“To the Moon”) and the skeptical belief that they have already reached their end (“It Is Dead”). These contrasting sentiments frequently manifest in transaction fees. These fees tend to reach their highest points (and occasionally fluctuate) near market peaks, subsequently returning to normal levels during market downturns.
Over the past six weeks, with markets primarily moving in reverse, reduced demand and network congestion may serve as key factors to hasten Ethereum (ETH) and associated altcoins’ comeback. In other words, Santiment’s analysis indicates that a price recovery could surface unexpectedly for these cryptocurrencies before some market participants had anticipated.
ETH Price Action
During the past weekend, Ethereum’s price experienced a notable increase and surpassed the $3,300 mark. Yet, it was unable to maintain this momentum and break through its significant barrier at the $3,400 resistance level.
As a researcher studying the hourly price action of Ethereum against the US Dollar, I’ve observed that there was a notable breach beneath a key bullish trendline. This trendline previously provided support at the $3,250 level. Currently, Ethereum is trading below not only $3,220 but also the 100-hour Simple Moving Average.
As a researcher studying the cryptocurrency market, I’ve observed some positive signs around the $3,165 mark and the 61.8% Fibonacci retracement level of our recent price uptrend, which started at $3,070 and peaked at $3,355. The bullish momentum is quite noticeable in this area. However, we’ll encounter resistance around the $3,210 level and the 100-hour Simple Moving Average before making further progress upwards.
As a crypto investor, if Ethereum fails to break through the $3,210 resistance, I would brace myself for a potential downturn. The initial floor could be around $3,180, and if the price drops further, there’s a stronger support level at roughly $3,165 that might halt the decline.
As a crypto investor, I’m keeping a close eye on Ethereum’s price action. The critical support level lies around $3,070. If this level gives way, there’s a risk of further losses potentially reaching down to $2,880. However, it’s important to note that the approval process for an Ethereum-backed ETF is looking less promising as the SEC has indicated they may discuss the investment product.
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2024-04-29 10:03