Why lower gas fees is super bullish for the Ethereum price
|- Ethereum price shows historically low gas fees.
- ETH price shows a bounce at a critical Fibonacci level.
- Invalidation of the uptrend is a breach below $878.
Ethereum price could make a run for the 200-week moving average at $1,200 and then some. Here are the factors to keep in mind.
Ethereum price could start pumping
Ethereum price shows subtle signals that a bull rally could be underway. On July 4, 2022, the bulls are fighting neck and teeth to hold ground amidst the bearish onslaught that has submerged the ETH price below $1,100 throughout the weekend. Ethereum price briefly breached through the $1,100 barrier Monday morning into a high at $1,117 before a profit-taking rally commenced sending ETH back to the current price of $1,080.
Ethereum price’s recent attempts to rally higher come at an optimistic time in the market. The decentralized smart contract token has recently witnessed the lowest gas fees on the network since 2020. This is quite an exciting occurrence as Ethereum Developers and participants in the DEFI community now have a window of opportunity to engage with decentralized finance protocols at a discounted price. It has been notoriously argued that the one flaw for Ethereum was unrealistic fees for everyday participants. Yet now the network’s historically low fees could catalyze an influx of users and new capital in the coming weeks.
ETH/USDT 30 Min Chart
From a technical perspective, the Ethereum price has shown strength after retesting the 50% and 61.8% Fibonacci levels (of the move from June’s monthly low at $881 to the high at $1,237). If the uptrend is genuine, the ETH price should see a frictionless rally into the 200-week Moving Average at $1,200 before a profit taking consolidation occurs. Invalidation of the bullish uptrend would come from a breach below $878. If bears manage to breach this level, expect more downside throughout July, with $750 as a probable target, resulting in a 33% decrease from the current Ethereum price level.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.