Ethereum (ETH) has lost up to 13% of its value in the last month, as the overall market continues to experience an overall price drop. The smart contract-centric blockchain network has continued to maintain its dominance of the market, which is currently pegged at 18.6%. After a 10% drop in the past month, ETH is now trading at $ 2,606.32 according to CEX.IO data, down from its 7-day high of $ 2,911.74.
Fundamental analysis: network service and reduction of gas rates
Yao Qing, a former PBoC official, echoed the usability of the Ethereum network and said that CBDCs can be built on top of the network. On the fundamental front, the Ethereum blockchain’s appeal for gas fees is currently boosting, as average transaction charges are now $ 4.80, down from as high as $ 70 in May.
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With the reduced fees, retailers can more easily access DeFi functionalities, a situation that can drive price action.
Technical analysis: ETH seeks to recover from key support zone
Market bulls are currently in control of prices as represented by the MACD indicator. However, the broader selling pressure appears to be pushing the price towards the $ 2,500 support level.
The price will surely hold at this point as a rebalancing will be sought to push the price to bounce from this point. This recovery, if sustained, will likely push ETH back to the $ 2,800 level in the short term and $ 3,200 in the medium term.
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