Ethereum has had a rocky past few days. From momentarily sinking below $4k to concerns around whether the platform would permanently solve the high Gas fees, ETH appears resilient.
The coin, if anything, could ease past $4.5k to compound optimism among holders that the future of the smart contracting platform would only be brighter. In the days to come, the inevitable debate among holders is whether Ethereum would eventually be cheaper to transact in.
The outrageously high ETH transfer fees—leave alone the ultra-high costs of minting nifties or deploying DeFi smart contracts for yield—remains an active barrier preventing widespread adoption despite how wild DeFi and NFTs are at the moment.
Already, Ethereum is losing business. From Ubisoft launching on Tezos to alternative high profile gaming development portals deploying on EVM-interoperable networks, the issue of high Gas fees remains a top priority. This is a concern because the Layer-2 TVL seems to be plateauing. Meanwhile, Polygon plans to launch a ZK Rollups to mask further its transactions running on the already scalable and low-fee environment. Still, optimism lies in the days ahead.
Expressly, the shift to a staking platform would relieve the pressure, dampening environmentalist´s questions. The change to Eth2 also paves the way for on-chain scaling solutions like Sharding. In combination with Layer-2 solutions like Arbitrum or ImmutableX, a multiplicative effect would go a long way in making Ethereum cheaper and scalable by several folds.
Ethereum Price Analysis
The ETH bleed of last weekend seems to have been arrested, reading from the development in the daily chart. However, it is safe to conclude that ETH buyers are not entirely out of the woods.
If anything, sellers are in control and the path of least resistance remains southwards. Notably, ETHUSDT prices are still inside the December 3 and 4 bear candlesticks. The high volume bear bar has a broad trading range, dropping to as low as $3.5k.
Despite the revival, ETH bulls are yet to shake off and invalidate the bear breakout pattern of early December. Therefore, unless there is a strong close above $4.5k—or $4.9k for Risk-on traders–, sellers are in control. Accordingly, at spot levels, every pullback may offer entries with targets at $3.5k.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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