Ethereum buyers are rampant at spot rates, stable on the last trading day but up double digits week-to-date versus the USDT, according to trackers.
Based on the formation in the daily chart, ETH bulls appear to be in control, most notably trading within a bullish breakout pattern, surging above the bear flag.
With this, ETH prices are bottoming up, rising after dropping over 50 percent from Q4 2021 peaks. Considering the pace of this recovery, ambitious crypto buyers may find entries as they are confident that the network’s fundamental factors are weaved to prop the uptrend firmly.
Ethereum Network Generates 50X in Transaction Fees than Bitcoin
For instance, transaction fees data reveal that Ethereum is the world’s most active public chain. On average, Ethereum can generate its miners up to 50X more in transaction fees than Bitcoin, the world’s most valuable cryptocurrency network.
This, data indicates, is exclusive of some of the network’s most used dApps like Uniswap and layer-2 networks. In the past 24 hours, Uniswap generated $2.4 million in trading fees, roughly 6X more than what the Bitcoin network created for its global miners at around $392k.
The disparity in transaction fees between Ethereum and Bitcoin indicates activity and preference. This also translates to heightened demand for ETH as it is required for paying transfer and smart contract deployment fees. It is also an indicator of demand and success of layer-2 solutions such as Arbitrum and Optimism that Ethereum’s developers prioritized to develop ahead of the much anticipated Eth2 merger. Post-Merger, Ethereum will adopt a staking approach and proceed with steps to scale the network.
Ethereum Price Analysis
Currently, Ethereum is up 13 percent on the past week of trading–fleeting around $3k—a crucial psychological round number, based on the ETH price formation in the daily chart. ETH is firm above $2.8k and trading above the bear flag, suggesting a possible shift in demand to favor buyers.
Moreover, the failure of sellers of March 20 to close below $2.8k and the resistance trend line, now support, completed a retest. As a result, aggressive traders may find entries on dips above $2.8k with immediate targets at February 2022 highs of $3.3k.
If not, sharp price dumps below $2.8k nullify the bullish overview, swinging price action back to a bearish territory as sellers target $2.3k.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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