Ethereum
Ethereum Gas Fees Drop 95% as ETH Struggles: Is FOMO Dead for Good?
Ethereum is sliding, looking at the formation in the daily chart. Although price action over the weekend indicated strength, the fact that it has not even reversed half of the losses from May 10 is concerning. As it stands, the path of least resistance is heading south despite the strong fundamentals surrounding Ethereum. How price reacts to the April 2024 lows and support, as well as the immediate liquidation level of $3,300 will shape price action in the medium term.
Traders are closely watching Ethereum, considering the impact it could have on altcoins. So far, the coin is moving horizontally, closing on the last day but down 7% in the last week of trading. Even though the advantage remains, based on a top-down view, sellers continue, rejecting any attempts higher. With lower prices, engagement is also low, considering the average trading volume over the past day at around $8.6 billion.
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The following Ethereum news developments are worth monitoring:
- Ethereum gas fees continue to fall, reflecting the decline FOMO and maybe fear sets in. Although the impact of Dencun is being felt, the nearly 95% drop points to more underlying factors. This is too positive, but if fees drop due to rising prices, on-chain activity on mainnet and layer 2 could skyrocket. In this case, gas will likely return to average levels.
- JP Morgan analysts are optimistic. In a recent advisory, they said the US SEC may, after all, approve a spot Ethereum ETF. They gave no timetable. It is very likely that the Commission will not give the green light to this product this year.
Ethereum Price Analysis
ETH/USD prices have been moving horizontally over the last three days or so, according to the arrangement of the candlesticks in the daily chart.
Friday’s selloff confirms that the mid-April bearish breakout formation is still valid and guiding in the short term.
Barring a reversal above $3,100 in the coming days, sellers are firmly in control and traders should align their trades with this outlook.
Only buyers might have reason to buy once the close is above $3,300.
However, looking at the current setup, ETH bears could continue, forcing prices below April lows and $2,800, especially if today ends up being bearish.