Ethereum Price Shoots Five Percent Along With High Gas Feeds
By Rubikav® on The Capital
Apparently the demand for Ethereum is getting stronger every day. In the last hours, it broke the correlation with Bitcoin, and the price shot up approximately 5%.
Ethereum within the hourly chart was in a strong price accumulation within a symmetrical triangle. At the time of writing this news, the price was around 417 USD.
Ethereum Is Overbought
From our perspective, for intraday, it is very overbought and with the instability of Bitcoin present, we can say that entry without strategy within this asset will require greater risk management.
Basically that is the big challenge that most traders are having these days. Everywhere they want to get into assets that are technically overbought and are warning many of their possible “out of juice.”
Behind the previous ones and with the experience we have, for many, it can really mean the excessive loss of capital for wanting to enter when “FOMO” many Telegram groups and other alert media without analytical and fundamental consent.
For now, we are identifying as a safe entry point above USD 427 and according to the perspective shown by the weekly chart. But we also believe that within this price, it can reach a settlement zone very close to USD 482, where we could simply have a new price accumulation or correction.
DeFi Is Affecting Feeds
With the modernity of decentralized finance (DeFi), Ethereum gas feeds to pay for transactions are becoming more expensive every day. According to the latest report from glassnode, the amount of fees being spent on the Ethereum network is higher than ever before (now even higher than the single day in June with anomalous fees unrelated to regular network usage).
Over 17,500 ETH (USD$6.8 million) are currently being spent on fees daily on Ethereum.
This spike in fees has been caused by a high demand for space on-chain, with the median gas price reaching an all-time high of 217 Gwei. The mean gas price is even higher, at 224 Gwei.
However, in order to use the network effectively, users will need to pay far more than the median gas spent. Etherscan is currently recommending an average gas price of over 350 Gwei for a 20 second wait time.
So why are fees so high? Simply put, fees are skyrocketing due to the massive demand for transactions on Ethereum. It’s alt season, and users are scrambling to allocate capital into the tokens and protocols that they expect to generate the most yield.
Weighted Social Sentiment
According to the latest report from santiment, Ethereum’s social sentiment is sky-high and is so high in fact, that this is the largest positive deviation from normal social sentiment levels in ETH’s history.
This is a classic case of the crypto community being simultaneously euphoric about a coin’s prospects with very few people willing to be bearish on the highly reputable project. But if history has taught us anything, buying into a euphorically viewed asset is the worst time to do so.
See you in the next story! With love 💛 Rubikav® Team!