Ethereum Technical Analysis: ETH Crosses $2.300 Psychological Level

Daily Ethereum ETH Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • The Ethereum price is trending in an upward channel formation.
  • The MACD shows increasing bullish market momentum.
  • The Ethereum price jumped from $1,570 on March 25 to $2,300, rising by almost $750, charting a new all-time high and breaching the $2,300-mark for the first time. During this upward surge, ETH was trending in an upward channel formation and flipping the 20-day and 50-day SMAs from resistance to support.

    Ethereum Price Charting New All-Time Highs

     The MACD shows increasing bullish market momentum and the relative strength index (RSI) is on the verge of entering the overbought zone. Both these indicators tell us that Ethereum price still has room to grow and reach the $2,400 mark.

     Image: ETH/USD daily

    Looking at the IOMAP, the strong support wall lies at $2,070 wherein 223,000 addresses had previously purchased 10.25 million ETH tokens. It seems like the Ethereum price will not crash below this line.

    Image: IntoTheBlock

     

    Ethereum Address Activity On The Rise

     Santiment shared this chart and showed that the amount of address activity on Ethereum is on the rise as it reached an all-time high level.

    “Those who have stayed strong in #Bitcoin & #Ethereum are rejoicing as new #AllTimeHighs have been established for the top two #cryptocurrencies by market cap. Our data points to major address activity rises this past year, leading to these achievements.”

    Flashbots Decrease Ethereum Gas

    According to a recent Reddit post, gas fees on Ethereum have dropped by a whopping 50%. Many have attributed this drop to traders’ increasing adoption of Flashbots instead of Priority Gas Auction (PG) bots, which were causing surged gas fees.

    A Redditor who goes by the name Set1Less said:

    Gas fees on Ethereum have reduced by almost 50 percent due to adoption of flashbots by traders in place of PGA bots. In the last 24-hours, the average gas fees for transactions has come down from around 120 gwei to roughly 65 gwei currently.

    For the uninitiated, Flashbots is a research and development firm. It is dedicated to mitigating the adverse effects of the current miner extractable value (MEV) techniques on blockchains like Ethereum.

    Flashbots focus on reducing gas fees. On the other hand, PGA bots prioritize transactions with higher gas fees, leaving those with meager transaction fees to get stuck in the queue. The Redditor added:

    Right now over 58 percent of hashrate is achieved on flashbots and PGA bots are finding it hard to compete. As flashbots continue to gain a larger share of hash rate, then gas prices should continue decreasing.

    Earlier, some experts indicated that the implementation of the EIP-1559 might not reduce gas fees on Ethereum. Following that, many mining pools rolled out sophisticated MEV programs to further enrich miners’ and traders’ adoption of Flashbots.

    Ethereum Price Is Expected To Reach These Levels

     The Ethereum price is expected to reach $2,400 zone before it gets overvalued.

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