Ethereum (ETH) has recently shown a significant surge, climbing nearly 50% and surpassing the $2700 mark. Discussions on social media reflect growing optimism, with observed changes in transaction fee structures playing a significant role in this trend.
Fee Reductions Support Ethereum's Rise
Recently, average transaction fees on the Ethereum network dropped to $0.84, significantly lower than the $7 recorded six months ago. This reduction makes the network more accessible for users, which may attract new investors. However, experts caution that if fees rise above $2, the upward trend could be at risk.
Major Investors Accumulate Ethereum
Data from Lookonchain reveals that the fund Abraxas Capital purchased $84.7 million worth of Ethereum on May 13. Over the past six days, the company has accumulated a total of 211,000 ETH, totaling $477 million, creating substantial buying pressure in the market. This strategic move has played a crucial role in Ethereum’s rapid price increase.
Technical Analysis and Future Projections
Technical indicators are mostly delivering positive signals. ETH continues to trade above its 50, 100, and 200-day moving averages, supported by the MACD indicator. However, the RSI reaching 79 indicates entry into overbought territory. Experts anticipate that if the $2,750 resistance is crossed, $3,000 may be tested. Conversely, if the price drops, a pullback to $2,100 could occur.
The recent rise of Ethereum is driven by a combination of declining transaction fees and the activity of major investors in the market. However, it is crucial to monitor technical indicators and market dynamics that may impact future trends.
