The world’s second-largest cryptocurrency Ethereum (ETH) has been recently under selling pressure and trading under $3,200. Moreover, Ethereum on-chain indicators like a sudden drop in ETH gas fees hint at a lack of network activity.
Ethereum Gas Fee Drops to 3-Year Low
As per the recent data from Dune Analytics, Ethereum’s median gas price has hit a notable milestone, reaching its lowest point in three years. As of April 27, the median gas price stood at a mere 6.43 gwei, marking the seventh lowest single-day gas median price recorded over the past three years.
Presently, the Ethereum Gas fee hovers around 5 gwei, reflecting the ongoing downward trend in gas prices on the Ethereum network.
Throughout trading history, traders have often oscillated between two sentimental extremes regarding the future of cryptocurrencies: the optimistic belief that prices are destined “To the Moon” and the pessimistic notion that “It Is Dead.” This sentiment shift often reflects in transaction fees, which typically peak (and occasionally deviate) around market tops, only to revert to normal levels during market bottoms.
In the past six weeks, as markets have predominantly retraced, the diminished demand and network strain may act as catalysts to expedite the turnaround for Ethereum (ETH) and related altcoins. This suggests that a recovery in prices could materialize sooner than anticipated by many market participants, reports Santiment.
ETH Price Action
Over the weekend, the Ethereum price made a good move above $3,300, however, failed to continue to the surge above its key resistance of $3,400 levels.
On the hourly chart of ETH/USD, Ethereum experienced a significant break below a crucial bullish trend line, which had support at $3,250. Presently, Ethereum is trading below both $3,220 and the 100-hourly Simple Moving Average.
Nevertheless, bullish activity is evident around the $3,165 support level, along with the 61.8% Fibonacci retracement level of the upward movement from the $3,070 swing low to the $3,355 high. The immediate resistance lies near the $3,210 level, as well as the 100-hourly Simple Moving Average.
Should Ethereum be unable to surpass the $3,210 resistance, a further downward trajectory may ensue. Initial downside support is anticipated around the $3,180 level, followed by a more substantial support zone near $3,165.
The primary support level is positioned around $3,070. A decisive breach below this crucial support level could potentially pave the way for additional losses all the way to $2,880. On the other hand, the chances of spot Ethereum ETF approval also seem to be dwindling with the SEC showing interest in discussing the investment product.
Read More: Ethereum Median Gas Price Hits 3-Year Low, ETH Price Action Ahead?