Santiment Indicates An ETH Rally As Transaction Fee Drops
According to Santiment, an on-chain analytics firm, Ethereum gas fees have experienced a notable decrease that could put ETH in a breakout range of $1,900.
🤑 Following a brief stint where #Ethereum's network became rather pricey at $7.40 per transaction, the average fee has dropped back down to $2.45. Over the past 24 hours, $ETH and wrapped $WETH are getting the lion's share of these fees. https://t.co/0br2LcwWWR pic.twitter.com/odoQWGcq0r
— Santiment (@santimentfeed) July 10, 2023
This decline in transaction costs is a much-needed respite, especially considering the sudden fee surge observed earlier this month.
In the early days of July, users of Ethereum encountered excessively high network gas fees, with transaction costs reaching a staggering $7.40 per transaction.
However, the disclosure from Santiment reveals a significant decrease in these fees, with the average price now standing at approximately $5.16.
Santiment suggests that this decrease in gas fees could have a bullish impact on Ethereum’s market direction, leading to a possible breakout towards the $1,900 price level.
This prediction aligns with the positive sentiment surrounding the improved affordability of Ethereum transactions, which may attract more users and investors to the platform.
Ethereum Poised for a Bullish Run as Price Targets $1,900 Again
Ether (ETH) has the potential to surpass $1,900 again in the coming weeks or months.
At the time of writing, the price of Ethereum is $1,882.59, with a current market cap of $226.30 billion.
Over the past 24 hours, Ethereum has experienced a slight increase of 0.04%, and its circulating supply is 120.21 million.
Additional metrics, such as daily active addresses, social volume, and development activity, also indicate positive prospects for the price of ETH.
As reported by Santiment, the daily active addresses on the Ethereum network witnessed a significant surge, reaching 303.64 thousand.
The number of ETH holders has also reached 71.7 million. Moreover, the development activity on the blockchain, which supports smart contracts, has shown impressive growth of over 104% in the last 30 days.
Considering these favourable developments surrounding the Ethereum project, coupled with the recent decrease in network gas fees, it is likely that ETH will be able to maintain its upward trajectory.
Ethereum Faces Resistance Despite Holding Support Above $1,850
Despite the recent bullish run, Ethereum continues to trade within a specific range, maintaining levels above $1,850.
Although the price is above $1,870 and the 100-hourly Simple Moving Average indicates a positive trend.
However, an important bearish trend line is taking shape, creating resistance near $1,890 according to Kraken’s data feed.
For Ethereum to experience a significant increase, it needs to surpass the barriers at $1,890 and $1,900.
In recent attempts to strengthen above $1,900, Ethereum failed to break the resistance and remained in a similar range to Bitcoin.
Ethereum may initiate another decline if it fails to surpass the $1,900 resistance.
Initially, support on the downside can be found around the $1,870 level or the 100-hourly Simple Moving Average.
The first major support level sits near $1,845, and a breach below it could lead to a revisit of the critical support level at $1,825.
If further losses occur, Ether might head towards the $1,770 level, followed by the $1,720 support level soon.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
