Ethereum Price Crash: What Next Support Levels For ETH Price Below $3K?
Ethereum, a major player in the cryptocurrency market, has recently seen significant changes in both transaction fees and market price. This article will explore the recent drop in Ethereum fees, their implications, and provide a price prediction for August 2024, focusing on market trends and potential future movements.
1- Ethereum Fees Reach Nine-Month Low
Ethereum fees have fallen to their lowest point in nine months, making the network more affordable for users and developers. According to on-chain analytics firm IntoTheBlock, gas costs dropped to as low as 1 Gwei, equivalent to $1, per transaction. This decrease is the lowest since December 2023.
Key Statistics
- Total Daily Fees: Ethereum’s total daily fees fell to $18.2 million, a 26.1% decrease over the week.
- Network Usage: Lower fees indicate reduced network activity, with fewer pending transactions.
The reduction in gas costs could potentially spur increased activity on the Ethereum network. Lower transaction costs make it more attractive for users to engage in transactions, potentially boosting overall network usage and developer activity.
2- Ethereum Price Action and Market Sentiment
The price of Ethereum has experienced a decline, reflecting broader market trends and investor sentiment. As of the latest data:
- Weekly Price Drop: Ethereum’s price fell by 6% over the past week, hitting $3,003, with intraday lows of $2,985.
- Investor Concerns: Market sentiment has been influenced by economic data showing increased unemployment and manufacturing sector weaknesses, raising concerns about the Federal Reserve’s interest rate decisions.
According to crypto analysts, Ethereum price is holding a crucial support level. If this support is lost, Ethereum may test lower levels around $2,800. Conversely, if the price rebounds, it could signal a potential upswing.
3- Ethereum Price Prediction for August 2024
Looking ahead, the price of Ethereum is currently in a critical zone, with the potential for further declines if certain support levels are breached.
Short-Term Analysis
- Hourly Chart: The ETH/USD pair has broken the local support level of $3,080, suggesting that sellers have the upper hand. There is a high likelihood of the price moving towards the $2,900 zone.
- Daily Chart: If Ethereum closes below $3,054, the accumulated selling pressure might drive the price down to the $2,800-$2,900 range.
Mid-Term Perspective
- Weekly Bar Closure: Focus on the weekly bar’s closure is crucial. If it closes around the current prices, a test of the support level could occur soon, potentially driving the price lower before any significant recovery.
As of the latest update, Ethereum price is trading at $3,011. The near-term outlook suggests a cautious approach, with close monitoring of support levels and market indicators necessary to anticipate future price movements. Major support levels to consider are $2800 in the first stage of the crash and $2500 in the second. Breaking below $2800 down to $2500 would be huge, and below $2500 could be deadly to recover from easily. So let's keep a close eye on Ethereum price struggle to rebound.
Ethereum’s recent fee reduction and price fluctuations highlight the dynamic nature of the cryptocurrency market. While lower fees could encourage more network activity, the current market sentiment and price trends suggest caution. Investors should keep an eye on key support levels and economic indicators that could influence Ethereum’s price in the coming weeks.
