The News Crypto -
- Ethereum faces a 26% monthly decline, raising recovery concerns.
- Gas fees hit a five-year low, signaling a potential price bottom.
Ethereum has had a tough month, witnessing a 26% decline over the past 30 days, with its price dipping below the $2,111 range. Currently, the second-largest cryptocurrency is trading at $2,579, reflecting a 3% decline, and its trading volume is down by 2%. Despite this downturn, whale activity and network movements have gained momentum.
A significant shift is occurring within the Ethereum ecosystem as gas fees plummet to their lowest levels in years. Industry experts suggest that the dramatic reduction in transaction costs could signal a potential price bottom for ETH, despite concerns over reduced token burning and increased supply.
Gas fees on the Ethereum network have recently hit a five-year low, with some transactions costing less than 1 gwei (approximately $0.04). This sharp contrast to historically high fees has sparked discussions about Ethereum’s future. The fee reduction is attributed to several factors, including a sluggish market, increased adoption of layer-2 solutions, and recent network upgrades such as Dencun.
In the midst of this, an Ethereum whale has continued its profit-booking spree as ETH prices briefly rose above $2,600. Hours ago, the “diamond hand” whale sold another 15,000 ETH, raking in a profit of $40 million. The daily Relative Strength Index (RSI) stands at 39, indicating increasing selling pressure.
Can ETH Bounce Back?
The outlook for Ethereum remains uncertain. The daily chart shows Ethereum entrenched in a bearish trend, with the 9-day Exponential Moving Average at $2,611.
If bullish momentum returns, the next resistance levels are $2,879 and $3,019. However, continued bearish sentiment could see the price drop to $2,477, with potential support at $2,196.
As Ethereum navigates this challenging period, the market is closely watching for signs of recovery. Whether it can bounce back depends on upcoming market dynamics and potential shifts in investor sentiment.
This content was originally published on The News Crypto
