The post Ethereum Price Continues To Decline From $1.9K! Is ETH Price Gaining Momentum For Recovery? appeared first on Coinpedia Fintech News
Ethereum, the second-largest cryptocurrency by market capitalization, has been on a rollercoaster ride in recent months. After reaching a high of $1.9K, the price has steadily declined. Amid the recent downturn, there are multiple indicators hinting at a potential recovery for Ethereum. As the price of ETH hovers near a crucial threshold, it prompts a significant question for investors: Is this price dip merely a prelude to an impending bull run, or could there be a further depreciation in Ethereum’s value?
Ethereum’s Average Fees Continue To Decline
The Ethereum network has recently experienced a noteworthy shift as average transaction fees have seen a substantial decrease. This drop follows closely on the heels of a considerable surge in fees recorded in May, which pushed it to an annual high.
As per the most recent data from the renowned market analysis platform, Santiment, Ethereum fees have now descended to a level below $5. This is a significant reduction from the annual high of over $10 per ETH transaction recorded in early May. Importantly, this recent development signifies a beneficial change for Ethereum users and the wider ecosystem.
As May drew to a close, data from Santiment indicated a roughly 69% decrease in Ethereum fees from their annual peak of $14 per ETH transaction earlier in the month. The data suggests that ETH fees have now stabilized at approximately $4.28 per transaction in recent hours.
Indeed, the substantial reduction in Ethereum transaction fees could be seen as a bullish indicator for Ethereum’s price. Lower fees enhance Ethereum’s accessibility and appeal, which could potentially stimulate increased demand for ETH.
Moreover, the Ethereum network is witnessing a surge in adoption as it touched a significant milestone by surpassing 100 million non-zero addresses, which is a bullish indicator for the asset.
Is A Bullish Revival On The Horizon?
Currently, Ethereum’s price is on a new downward trajectory after its unsuccessful attempt to breach the resistance zone at $1,927. Similar to Bitcoin, ETH slipped below the $1,880 mark, transitioning into a short-term bearish zone.
A further shift was seen beneath the $1,860 level, with the price even probing the $1,840 support. ETH’s price has formed an intraday low at $1,837, and the price is currently in a phase of loss consolidation. It’s now testing the 50% Fibonacci retracement level, ranging from the high of $1,880 to the low of $1,840.
As of writing, ETH price trades at $1,862, declining over 0.45% in the last 24 hours. If sellers pull the price below $1,827, the ETH price could potentially drop to $1,762, followed by a further decline to the wedge’s support line.
In contrast, if the price bounces off the wedge’s resistance line, it would imply that the bulls have successfully converted this level into support. Under such circumstances, the ETH price could ascend to the psychological resistance at $2,000 and possibly even reach $2,100.