- Ethereum’s fees have risen to their highest level since May 2022 due to network transaction demand.
- Despite the price drop, ETH’s rising trading volume and reduced fees imply a potential price hike.
- The MFI and RSI support the oversold market, indicating caution for traders evaluating long positions.
Following a drop below $2k last week, Ethereum’s fees have surged to their highest point since May 2022, owing to a rise in network transaction demand. Consequently, the network has been congested, leading to processing time delays. However, while the charges remain high, there has been a 35% reduction, which has relieved customer constraints and propelled network use.
? After crossing back under $2k last week, #Ethereum's network saw its fees explode to their highest level since May, 2022 as traders polarized and figured out whether to buy or sell. Though still relatively high, fees have been discounted by 35% since. https://t.co/z8AMJr57V4 pic.twitter.com/AIyDWrL5dG
— Santiment (@santimentfeed) April 24, 2023
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Despite ETH experiencing a 24-hour high of $1,874.11, bearish sentiment remained strong as prices later fell to an intraday low of $1,807.74. The cryptocurrency’s value has decreased by 1.46% to $1,824.82.
The market capitalization of ETH also declined by 1.41% to $219,800,521,762. Despite this, the 24-hour trading volume has increased by 6.38% to $8,186,853,881. The surge in trading volume and reduced fees could suggest a rising demand for ETH, which may eventually lead to an increase in price.
The Fisher Transform line for the ETH market has a value of -1.22 and is positioned below the signal line on the 4-hour price chart. This indicates that the market is oversold, and it might be a buy signal in the near future. The anticipated reversal will be confirmed upon the Fisher Transform line successfully crossing over the signal line.
The Money Flow Index (MFI) now has a negative trend, which lends more support to the bearish momentum in ETH. The current value of the MFI is 18.89. Traders should use extreme caution if they consider entering into long positions, particularly if the MFI falls below the oversold level, as this may signal the beginning of a more severe negative trend. The falling level of the MFI is indicative of increased selling pressure.
The Relative Strength Index (RSI), presently reading 37.54, has fallen below its signal line and into the oversold zone, indicating that ETH may still be subject to short-term bearish pressure. Consequently, traders can wait to start an extended position until the RSI climbs above its signal line and exits the oversold region before making that decision.
On the price chart for the 4-hour time frame, the stochastic RSI now shows a value of 59.74, which places it below its signal line. This move indicates the asset is oversold and may soon reverse bullishly to the upside. If the stochastic RSI on the ETH market moves above the signal line, this is evidence of a possible change in momentum or reversal in the trend.
Ethereum’s price decline and growing trading volume imply a possible momentum change, although caution is urged as the market remains oversold.
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