Ethereum prices are bottoming up from 2022 lows. Currently, the coin is up 14 percent from 2022 lows, and there is a high probability of ETH adding to their recent gains.
Technically, sellers have the upper hand from a top-down analysis. Still, a close above a critical resistance level, mainly $2.2k and $2.5k, may draw demand, pumping the coin higher.
Ethereum Gas Fees are at Record Lows
Several fundamental reasons may spark demand in the short term. For instance, due to recovering markets, DeFi’s Total Value Locked (TVL) is rising, adding $5 billion in the past 36 hours. Since Ethereum dominates, a big focus will be on whether Gas fees will be prohibitive.
In the past few months, trading fees have declined as DeFi, and NFTs traders keep away due to falling prices. A recovering market would most likely trigger demand, pumping Gas fees from recent lows.
The Merge Testnet Set for June 8
Besides, ETH traders closely monitor the transition from the proof-of-work network to staking through the Merge.
Ethereum core developers are actively working towards ensuring a safe transition. In a recent announcement, the development team said they would begin testing the Merge on the Ropsten testnet from June 8, 2022.
Describing it as a “dress rehearsal“, the team said the Ropsten is the proof-of-work testnet and is preparing to run it through the Merge. The team has launched Ropsten on the Beacon Chain to provide consensus for the network ahead of this testing.
Ethereum Price Analysis
The Ethereum price is steady at spot rates.
Overall, buyers are confident. ETH prices could rally in the days to come, building on the bullish engulfing bar of May 30. Even so, it should be observed that prices are still inside the May 11 and 12 trade range.
While a solid close above the flexible resistance line in the 20-day moving average may buoy bulls, a close above $2.2k and $2.4k would signal a complete shift in trend.
Ahead of this, aggressive ETH traders may find loading opportunities above $1.7k and inside the May 30 trade range. Their immediate buy target would be $2.2k. On the flip side, more profound losses below this week’s lows and $1.7k may trigger a sell-off, pushing ETH to new 2022 lows.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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