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Ethereum Network Fees Hit 4-Month With ETH Price Under Pressure, What’s Next? – Crypto News

Published

1 year ago

November 14, 2023

Dripp

After a string upswing to $2,100 last week after the news of BlackRock filing a spot Ethereum ETF, the ETH price has come under some selling pressure and is currently trading around the $2,000 level.

Ethereum Fees Hit 4-Month High

Earlier this week on Sunday, November 12, the Ethereum network fees climbed to $5.72 per transaction hitting its highest levels since July 2023.

On-chain data provider Santiment noted that with the resurgence of Ethereum (ETH) above $2,000 last week and increased network activity, it’s no surprise that fees have also climbed. However, in relative terms, transaction costs remain affordable compared to the elevated average fee levels of $14 observed in May. Keep an eye on the potential impact on other ERC-20 tokens as well.

ETH Price and Options Data

The Ethereum chart reveals a recent pullback following a significant price surge, indicating a momentary pause in the market. This consolidation phase is considered healthy, providing an opportunity for the market to establish new support levels. Ethereum’s price remains comfortably above both its 50-day and 100-day moving averages, signaling an overall bullish trend. The relative strength index (RSI) has retreated from overbought levels, creating potential room for another upward price movement.

If Ethereum maintains its support and avoids dipping below the moving averages, there’s potential for another rally, potentially fueled by increased adoption and positive market sentiment. Observing a narrowing of Bollinger Bands, followed by a breakout above the upper band, could indicate the beginning of another bullish phase.

In recent trading activity, Ethereum witnessed increased block trades, with 60,000 options accounting for 40% of the day’s total volume, amounting to a notional value of $120 million. The primary trade involved December calls, with a notable transaction of nearly $50 million, likely representing the closure of a previous market maker’s position.

During this ongoing bull market, significant whales initiated long positions in October, yielding substantial profits. With the bull market still intact, these major players have yet to close their positions, maintaining a continued bullish stance.