Amidst escalating geopolitical tensions, including the Israel-Iran conflict, Bitcoin and the broader cryptocurrency market experienced significant selling pressure earlier today. However, investors swiftly responded with strong buying interest, leading to a robust recovery. Ethereum, which had dropped to $2,877, has rebounded strongly to $3,100.
Ethereum Gas Fees Drop to Three-Month Low Recent data from on-chain analytics firm Santiment indicates a notable decrease in transaction costs on the Ethereum network. Transaction fees on Ethereum have fallen to $2.07, a substantial decline from the $15.21 recorded on March 4th during a period of heightened demand.
Analysts at Santiment suggest that transaction fees on the Ethereum network often mirror prevailing sentiments within the cryptocurrency market. During periods of extreme bullishness, transaction fees tend to peak, while they decrease during phases of pessimism.
This pattern underscores the cyclical nature of cryptocurrency markets, with peaks in transaction fees often coinciding with price tops for Ethereum.
Competition from Ethereum Layer-1 competitors like Solana, which have experienced a surge in DeFi activity and meme coin frenzy, has contributed to network decongestion on Ethereum, keeping gas fees lower.
ETH Price Action Ahead Despite attempts at recovery, Ethereum encountered resistance near the $3,100 mark, similar to Bitcoin’s struggles. While initially stabilizing above $3,000, bearish sentiment pushed the price below this support level, briefly dipping below $2,900 before rebounding to establish a bottom at $2,867.
Currently, Ethereum is recovering from its losses, having surpassed the 23.6% Fibonacci retracement level. However, it remains below $3,100 and the 100-hourly Simple Moving Average (SMA).
The immediate hurdle for Ethereum is near the $3,020 level, followed by significant resistance around $3,070, coinciding with both the 100-hourly SMA and a key bearish trend line. Further resistance is anticipated around $3,120, aligned with the 50% Fibonacci retracement level, potentially paving the way for an upswing towards $3,200.
Powered by Crypto Expert BD
Follow us on Twitter: https://x.com/CryptoExpert_BD
Join our Telegram channel: https://t.me/CryptoExpert_BD
