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.

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