Crypto News– Following a robust rally to $2,100 last week, triggered by the news of BlackRock filing for a spot Ethereum ETF, the ETH price has encountered selling pressure, currently hovering at the $2,036.04 level. Concurrently, Ethereum network fees have surged to $5.72 per transaction, marking their highest levels since July 2023.
ETH Price Under Duress as Ethereum Network Fees Soar to a 4-Month High – What Lies Ahead?
Santiment, an on-chain data provider, observed that the uptick in Ethereum’s price above $2,000 and the subsequent increase in network activity have led to the expected rise in fees. However, these transaction costs, in relative terms, remain reasonable compared to the elevated average fee levels of $14 witnessed in May. It’s crucial to monitor the potential impact on other ERC-20 tokens in the wake of these developments.
Analyzing the Ethereum chart, reveals a recent pullback after a substantial price surge, indicating a temporary pause in the market’s momentum. This consolidation phase is deemed healthy, offering an opportunity for the market to establish new support levels. Notably, Ethereum’s price maintains a comfortable position above both its 50-day and 100-day moving averages, signaling an overall bullish trend. The relative strength index (RSI) has retreated from overbought levels, suggesting the potential for another upward price movement.
If Ethereum manages to sustain its support and avoids dropping below the moving averages, there’s potential for another rally, potentially driven by increased adoption and positive market sentiment. The observation of Bollinger Bands narrowing, followed by a breakout above the upper band, could signal the beginning of another bullish phase.