Key Takeaways:
-
The Ethereum forms a bull flag on the sun -day chart, with a potential breakout at $ 4,000.
-
If the Ethereum network activity and the total amount locked continue to grow, the price of ETH may see additional advantages.
The price of Ether is printed by a “bull flag” in the day -to -day chart, a technical development chart associated with strong upward momentum. Can a stimulation of technical setup and increase transaction fees on the continuation of the ETH rally to $ 4,000?
Increasing Ethereum transaction fees are bullish
The recovery throughout the market, which is -fueled by Bitcoin’s rise to new all-time highs and improving macroeconomic conditions, ether saw (Eth) Rising prices nearly 56% to an eight -week high $ 2,734 on May 23, from a low $ 1,750 on May 6.
This price strength is reflected in the onchain activity, with a sunny number of Ethereum transactions rising by 37% in the last 30 days. These levels were last seen in January 2024, when the hype around the Approval of areas based on US Bitcoin ETF Push ETH price above $ 4,000 For the first time since December 2021.
The daily average Ethereum transaction fee is also skyroketed, reaching a 90-day high of 0.0005 ETH ($ 1.33) on May 22.
High transactions and fees suggest that more users are in contact with the network, whether for defi, NFTS, or other DAPPs. It suggests high network activity, often linked to increasing interest and market confidence.
Related: Ethereum holders return to revenue as ETH prices enter ‘essential places’ for $ 3k breakout
Historically, the price of Ether has grown during high use. For example, during the 2021 Defi Boom, the fees reached as high as 0.015 ETH due to high demand.
As such, high -fees -fees use high -time uses indicate growth in network activity or bullish emotions, as more ETH is required for gas, pushing its price upward.
TVL’s rise supports ETH price bulls
Increasing activity in the Ethereum network is also apparent when evaluating the Total amount that is locked (TVL) on smart network contracts.
Ethereum’s TVL rose to $ 65.3 billion on May 23 from $ 45.26 billion on April 22, an increase of more than 44% in nearly 30 days.
Positive signs include a 51% increase in pendle deposits, a tokenization protocol, and 48% growth in ether.fi and Singlelayer.
The Ethereum remains undeniable TVL leader, with a market dominance of 54%. In comparison, Solana’s dominance stands at 8%, and the BNB chain only regulates 5% TVL dominance over layer-1 chains.
In addition to The US -listed area listed Seeing a total of $ 249 million in net inflows between May 13 and May 22, adding to demand-side tailwinds.
Ether’s bull flag indicates $ 4,000
The ETH price is formed by a bull fag chart pattern in the sun -day chart, as shown below.
A Bull flag The pattern is a bullish setup that forms after the price combined within a down-sloping range following a sharp price increase.
The flag was resolved after the price above the upper racing of $ 2,550 was damaged and could now increase by the number of heights of the previous uptrend. It puts the upper target for the price of ETH just below $ 4,000, up to 56% from the current price.
Crypto analyst Michael van de poppe Says That ETH price has to hold $ 2,400 support to increase the opportunity to move towards $ 3,500 and more.
As Cointelegraph reported, the uptrend of Ether Continue to $ 3,600 In May if the levels of basic support are handled.
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
