Ethereum price take profit consolidation has turned into a complete seller frenzy. Still, a potential stab snatch opportunity presents itself at lower targets. Altcoin analyst Tony Montpeirous says Ethereum investors will see a Wall Street discount in the coming days.
Leading altcoin gains downward momentum
Ethereum price finally revealed its cards as the bears stretched a 17% drop. In doing so, the bears successfully crossed with a rising wedge, which is a major consolidation signal for the bears that have stepped aside to enter the market.
Crypto Quant’s flow metric to exchanges shows a huge drop in inflows. It also gives a warning that a major liquidation is on the way. However, it is unlikely to happen until liquidity levels are tagged near $2,020.
Ethereum price rallied to $2,030 on Saturday 8/12 before starting the expected decline. Ethereum price is currently up for auction at $1687 as the bears successfully crossed 8 of the 21-day moving averages. In this environment, the analyst expects a pullback to breached resistances over the weekend. However, market theory suggests a pullback to the liquidity levels at $1571 and $1450 as likely to occur one way or another. The volume data confuses the bearish view as an increasing flow of selling pressure is displayed on the 1-hour time frame.
The invalidation of the downtrend will emerge with a second test of the bulls at the $2030 level. However, risky bulls can wait for the $1370-1420 region in the coming days. The analyst also thinks that $1270 with the override mark will present favorable entry opportunities. Pullback targets will extend to $1,984. The upcoming Ethereum merge presents an optimistic picture for this scenario.
Ethereum gas fees at the lowest level in the last year
Fees for processing transactions on the Ethereum network are at a one-year low, according to data from IntoTheBlock. This is primarily connected with the movement of transactions. These were previously implemented in Ethereum to Layer 2 scaling solutions (L2s). Currently, the total fee for using the Ethereum network is 1,490 ETH. A year ago this was 5,280 ETH. After recording 81,750 ETH in total fees on May 1, Ethereum saw a drop in fees paid.
Along with the decrease in the total fees paid for using the Ethereum network on a daily basis, the average fees paid per transaction have also decreased significantly. Currently, on average, it costs $2.55 to process an Ethereum transaction. On a Year-To-Date (YTD) basis, average fees paid per transaction fell by over 90%. As of January 1, that figure was $26.39.
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