Ethereum (ETH) The price managed to dodge the recent dips and is now trading below the 21-day simple moving average (SMA). According to analysts, the altcoin’s price action could host a rally.
Ethereum Price Is Preparing For A Breakout
Ethereum price has started to recover after the recent dips in the crypto markets. Due to its correlation with Bitcoin, the Ethereum price has seen a huge drop over the past two weeks.
Alongside the top ten most valuable altcoins Ethereum price He also managed to erase the losses he suffered last week. But even more interestingly, transaction fees on the network continued to drop and hit a 30-day low. This strengthened a bullish sentiment among investors. As it has been seen many times before, the drop in transaction fees on the network is an important factor in triggering a rally.
Ethereum’s network fees are considered one of the biggest barriers to network adoption. The reduction in transaction fees could play a critical role in regaining the focus previously shifted to networks like Solana, Cardano and Avalanche.
With the last transaction fee drop, the 30-day low has been reached, which can increase the on-chain activity in the Ethereum network, creating a growth in volume.
Analysts evaluated the ETH price trend and predicted a rally in the altcoin. Ethereum price has now crossed the 50-day SMA and the altcoin is currently trading below the 21-day SMA line, analysts believe it is poised for a breakout.
FXStreet analysts, on the other hand, believe that traders can make a profit at the $3,700 level. The demand center has risen to $2,900 and Ethereum price could hit the $3,700 target in the short term.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.