Binance’s US arm eliminating trading fees for ETH means this for Ethereum price
|- Binance.US announced that starting December 7, Ethereum trading will have zero fees for all customers.
- Binance’s American extension first began its zero-fee trading service with Bitcoin in July this year.
- Ethereum price will need to observe some buying pressure in order to initiate a 16% recovery rally.
Binance has managed to cement itself in the crypto space as a leader over the last couple of weeks. Following FTX’s collapse, the world’s biggest cryptocurrency exchange has been attempting to regain its customers’ trust and confidence. To ascertain the success of its attempts, Binance.US is also attempting to lure in users with zero-fee trading, extending it to Ethereum.
Binance.US provides free Ethereum trading
Binance, in a blog on Wednesday, announced that its American arm, Binance.US, will be eliminating fees for trading Ethereum on the platform. Effective December 7, all customers, old and new, will be able to trade ETH’s spot pairs fee-free. Discussing the fee elimination, Binance’s announcement stated,
“Zero-fee ETH buys and trades reinforces our customer-centric commitment to deliver best-in-class value to all Binance.US customers, without any minimum trading volume requirements or hidden fees.”
This is necessary at a time when customers’ confidence is pretty low in the crypto market, thanks to FTX’s debacle. Binance initially only launched its zero-fee trading service for Bitcoin in July, where only 13 BTC pairs were deemed fee-free.
Additionally, Binance.US is also simplifying its fee system starting January 2023, bringing its three tiers down to two. Titled Tier 0 and Tier 1, the former will be inclusive of all the assets which fall under the zero-fee trading service, i.e., Bitcoin and Ethereum for now. The latter tier will bear some fees except for market makers, where the monthly trading volume exceeds $300 million.
Ethereum price is looking for a jump
Ethereum price did not observe any immediate effect of the announcement as the altcoin remained rangebound between $1,187 and $1,311. Trading at $1,230, ETH might be able to tag $1,426 and chart an almost 16% rise, provided it gains some bullish pressure.
The Relative Strength Index (RSI) indicates a clear domination of selling pressure on the 4-hour timeframe over the last week. This is because Ethereum price has been unable to breach its immediate resistance at $1,311. However, if buying takes precedence and ETH restarts its climb, it would be able flip $1,311 into a support floor and rally further.
ETH/USD 4-hour chart
On the other hand, if bearish cues push the price down, Ethereum price could tag the support level at $1,187. The unfavorable volatility of the market could turn the critical support at $1,145 as ETH’s next target. A daily candlestick close below this level would invalidate the bullish thesis resulting in the altcoin tagging the monthly lows of $1,082.
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