Gas fees on the Ethereum [ETH] network have been on the rise due to increased activity, particularly with the growing usage of decentralized finance (DeFi) platforms and higher ETH transfer volumes.
Technical analysis indicates a bullish market structure and momentum on the daily chart, but there are crucial resistance levels that need to be overcome.
Ethereum’s Performance during Recent Consolidation Period
While Bitcoin [BTC] has experienced a 13.4% decline from its recent highs in March, ETH has seen a more significant drop of 35.8%. This weaker performance compared to Bitcoin suggests a bearish Ethereum price prediction until the key resistance at $3k is breached.
The weekly chart shows a downtrend, with the $2,820 level representing the latest lower high to surpass. Breaking through these levels will be crucial before facing the challenge at $3.6k.
The Chaikin Money Flow (CMF) has reached a high of +0.3 on the daily chart, the highest since March, indicating strong buying pressure that has driven a 16.7% increase in the asset’s value over two weeks.
The Average Directional Index (ADX) and Directional Movement Indicator (+DI) are both above 20, signaling a robust and bullish trend. Nevertheless, the bulls are still struggling to overcome the 50% Fibonacci retracement level.
Assessing Trend Strength through Netflows
Since late July, there has been a continuous outflow of Ethereum from centralized exchanges, suggesting accumulation. However, this outflow is not as intense as seen in February or November 2023.
Over the past couple of weeks, there have been several days of positive netflows. While not indicating a mass exodus, it does suggest that some holders are capitalizing on profits, potentially due to ETH’s performance since March.
Based on the current netflows chart, there isn’t strong support for a significantly bullish Ethereum price prediction in the next 4-8 weeks.
Disclaimer: The views expressed here are based on personal opinions and do not constitute financial advice or recommendations for trading or investments. It is important to conduct thorough research and analysis before making any financial decisions.