Ethereum price chart targets $4K as transaction fees hit 3-month high

7 hours ago

Key takeaways:

Ethereum is forming a bull emblem connected the regular chart, with a imaginable breakout to $4,000.
If Ethereum’s web enactment and full worth locked proceed to grow, ETH terms whitethorn spot further gains.

Ether’s terms printed a “bull flag” connected the regular chart, a method illustration enactment associated with beardown upward momentum. Could a strengthening method setup and expanding transaction fees awesome the continuation of ETH’s rally toward $4,000?

Ethereum transaction fees rising is bullish

Marketwide recovery, fueled by Bitcoin’s emergence to caller all-time highs and improving macroeconomic conditions, saw Ether’s (ETH) terms emergence by astir 56% to an eight-week precocious of $2,734 connected May 23, from a debased of $1,750 connected May 6.

This spot successful terms is reflected successful onchain activity, with Ethereum’s regular transaction number rising by 37% implicit the past 30 days. These levels were past seen successful January 2024, erstwhile the hype astir the approval of US-based spot Bitcoin ETFs pushed ETH terms supra $4,000 for the archetypal clip since December 2021.

Ethereum's regular mean transaction fees besides skyrocketed, reaching a 90-day precocious of 0.0005 ETH ($1.33) connected May 22.

High transaction number and fees suggest that much users are interacting with the network, whether for DeFi, NFTs, oregon different DApps. It suggests precocious web activity, often correlating with accrued involvement and marketplace confidence.

Historically, Ether’s terms has surged during high-usage periods. For example, during the 2021 DeFi boom, fees spiked to arsenic precocious arsenic 0.015 ETH owed to precocious demand.

As such, precocious utilization periods with precocious fees bespeak maturation successful web enactment oregon bullish sentiment, arsenic much ETH is needed for gas, pushing its terms upward.

Increasing TVL supports ETH terms bulls

The summation successful Ethereum’s web enactment is besides evident erstwhile analyzing the total worth locked (TVL) connected the network’s astute contracts.

Ethereum’s TVL has risen to $65.3 cardinal connected May 23 from $45.26 cardinal connected April 22, an summation of implicit 44% successful astir 30 days.

Positive signs see a 51% summation successful deposits connected Pendle, a tokenization protocol, and 48% maturation connected Ether.fi and EingenLayer.

Ethereum remains the undisputed person by TVL, with a marketplace dominance of 54%. In comparison, Solana’s dominance stands astatine 8%, and BNB Chain commands lone 5% dominance successful TVL among layer-1 chains.

In addition, US-listed spot Ether ETFs saw a full of $249 cardinal successful nett inflows betwixt May 13 and May 22, adding to demand-side tailwinds.

Ether’s bull emblem hints astatine $4,000

ETH terms has formed a bull fag illustration signifier connected the regular chart, arsenic shown below.

A bull flag signifier is simply a bullish setup that forms aft the terms consolidates wrong a down-sloping scope pursuing a crisp terms rise.

The emblem resolved aft the terms broke supra the precocious trendline astatine $2,550 and could present emergence by arsenic overmuch arsenic the erstwhile uptrend’s height. This puts the precocious people for ETH terms conscionable beneath $4,000, up 56% from the existent price.

Crypto expert Michael van de Poppe said that the ETH terms needs to clasp the $2,400 enactment to summation the chances of moving toward $3,500 and beyond.

As Cointelegraph reported, Ether’s uptrend is apt to continue toward $3,600 successful May if cardinal enactment levels hold.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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