The price of Ethereum has continued to fall since the spot ETF was approved at the end of July. It reached a deepest level of $2,111 on the 5th, setting a new low since early January this year. It has rebounded, reaching a maximum of US$2,780 on the 14th, and is currently trading at US$2,585, which is not a very strong rebound.
Analysts look at Ethereum trends
On this occasion, some analysts warned that there are still downside risks to Ethereum. McKenna, a partner at Arete Capital, tweeted on the 15th that he did not think ETH would break through $2,800-2,900, but would remain range-bound for part of August and September.
According to McKenna, when Ethereum rebounded to $2,750 on the 12th, it encountered strong resistance in the supply congestion area of $2,800. The currency price is currently "close to this supply level." Therefore, he will not long ETH from the current level. , he believes a dip below $2,555 would be a good time to buy.
Another legendary trader, Peter Brandt, also expressed a bearish stance. He said that Ethereum has fallen below the previous shock range and is currently showing a rising wedge shape at the daily level, but it will continue to fall. When the price of Ethereum rises Above $2,960, he will sell and run, and his next bearish target price will be $1,651.
Ethereum network gas fee is less than 1 Gwei
It is worth noting that Etherscan data shows that the current average gas fee on the Ethereum network is only 0.957 Gwei, which is a new low since 2020. Since Ethereum conducted the Berlin hard fork in May 2021, the average daily gas fee has been low. There are less than 20 days in 10 Gwei.
Alice Liu, head of research at CoinMarketCap, said that this situation often occurs during periods when the price of Ethereum is lower than the market level, and is usually seen as a reflection of low network activity and market sentiment, but extremely low gas fees like this will not last for too long. Long.
Some analysts also believe that Ethereum’s low gas fee environment is due to the migration of transaction activities to L2. Since the Dencun upgrade in March, which significantly reduced L2 fees, L2 usage has indeed increased. TVL on L2 has increased from 120 in the same period last year. billion soared 300% to US$36 billion.
