Ethereum (ETH) Price Set to Bounce off Support as Buying Momentum Surges Amidst Fallen Gas Fees

Ethereum (ETH) has lost as much as 13% of its value in the past month as the broader market continues to experience a general price drop. The smart contract-focused blockchain network has continued to maintain its market dominance which is currently pegged at 18.6%. After a drop of 10% in the past month, ETH is now trading at $2,606.32 according to data from CEX.IO, down from its 7-Day high of $2,911.74.

Fundamental Analysis: Network Utility and Reducing Gas Fees

The usability of the Ethereum network was re-echoed by Yao Qing, a former PBoC official who said CBDCs can be built atop the network. On the fundamental front, the attractiveness of the Ethereum blockchain per the gas fees is currently being boosted as average charges on transactions is now $4.80, down from a figure as high as $70 back in May.

With the lowered fees, DeFi functionalities can be accessed more readily by retail traders, a situation that can boost price action.

Technical Analysis: ETH Seek Rebound From Key Support Zone

Market bulls are currently in control of prices as depicted by MACD Indicator. However, the broader selling pressure seems to be pushing the price toward the $2,500 support level.

The price is bound to hold at this point as a rebalancing will be sought to push the price to rebound 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 mid-term.

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