As per the analysis by Santiment, a silver lining has emerged amid the gloomy gas fee scenario – Ethereum’s gas fees are witnessing a considerable dip. A potential knock-on effect could potentially see ETH break into the $1,900 arena. This breath of fresh air comes in light of the previously steep fee surge that engulfed early July, where each transaction soared up to an overwhelming $7.40. As of now, according to the same research, a relief is palpable with average transaction charges have fallen to nearly $5.16.
This downward shift in gas fees sets the stage for a bullish undertone in Ethereum‘s market trajectory, signposting a possible resurgence towards the coveted $1,900 price target. The financial feasibility presented by this development is likely to pull in an influx of users and investors alike.
Meanwhile, Ethereum locks gazes with the target of $1,900 once more, promising a bullish comeback. Currently, Ethereum sits at $1,882.59, with a towering market capitalization of $226.30 billion. Today, the coin has trotted upwards by a minor 0.04%, boasting a circulating supply of 120.21 million. Daily active addresses have recorded a significant upswing, peaking at 303.64 thousand, while the legion of ETH holders now breaks the 71.7 million record. Besides, the development activity showcases an impressive 104% growth in the past month.
However, Ethereum faces a stubborn resistance pulse despite hovering above the $1,850 comfort zone. A crucial bearish trend line is shaping up to seem formidable near the $1,890 mark as per Kraken’s data. To experience a substantial hike, Ethereum has to dismantle the $1,890 and $1,900 blockades. Failure to break into the $1,900 fortress will more likely than not trigger a descent, with the first aid station arriving near $1,870 or the 100-hourly Simple Moving Average. Breaking the first major support level at $1,845 might usher in a revisit to the critical $1,825 support level. Further stumble could see Ethereum fall towards the $1,770 level, promptly followed by the $1,72 support level.
In summation, Ethereum has been caught in a tug-of-war between its potential ascension given the gas fee relief and other positive indicators, and the lurking bearish trend and resistance levels. The continuity or break of these trends will, in great measure, dictate Ethereum’s future trajectory.
Remember: crypto investments are always fraught with high risks. Proceed with caution, bearing in mind that capital erosion is a real possibility.
Source: Cryptonews
