Crypto Industry News:
The infamous Ethereum blockchain transaction fees have gone through a declining phase since January 10 to record an average and median of $14.17 and $5.67 - the lowest since September 2021.
According to blockchain data, the average January ETH transaction fee was $53.03 and at its peak in May 2021 it was $70.83. In just one month, the average fees dropped by almost 73.3%.
Additionally, the median transaction fee decreased by 81.02% compared to January's $29.88. Over the past six months, the median ETH transaction fee was the lowest in September at $ 6.26.
Interestingly, the number of transactions on the Ethereum network has also dropped to the numbers last seen in early 2019. Blockchain data shows that on February 1, the number of Ethereum transactions fell to 14,574,808 from 36,851,128 - a decrease of 60.44% in one month .
This is the first time in Ethereum history that the number of transactions has experienced such a huge drop in 30 days. In November 2021, Ethereum co-founder Vitalik Buterin proposed a new cap on the total number of transactional connections on the block to reduce the total cost of transaction gas on the ETH network.
Technical Market Outlook
The ETH/USD pair continues the pull-back towards the level of $2,816 after the third Bearish Engulfing candlestick pattern occurred at the H4 time frame. The momentum remains negative, but the market conditions are now extremely oversold, so a reversal is expected any time soon. The nearest technical support is seen at $2,816 and $2,696. The intraday technical resistance is located at $3,000 and $3,024. The next target for bulls is the supply zone located between the levels of $3,385 - $3,438. The bulls are in control of the market on the higher time frames as the momentum is strong and positive on the daily time frame chart as well, so the market is bouncing from the extremely oversold conditions.
Weekly Pivot Points:
WR3 - $3,490
WR2 - $3,400
WR1 - $3,079
Weekly Pivot - $2,975
WS1 - $2,651
WS2 - $2,541
WS3 - $2,228
Trading Outlook:
The market is bouncing after over the 50% retracement made since the ATH at the level of $4,868 was made. The level of $3,436 is the next key technical resistance for bulls. On the other hand, the next long-term technical support is located at $1,721 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term retracement level for bulls.