The main dishes to remember:
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Ethereum forms a bull flag on the daily graphic, with a potential break at $ 4,000.
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If the activity of the Ethereum network and the total locked value continue to grow, the price of the ETH can see other gains.
The price of Ether has printed a “bull flag” on the daily graphic, a training of technical diagrams associated with a strong ascending dynamic. Could the technical configuration and increase in transaction fees report the pursuit of the ETH rally to $ 4,000?
Ethereum transaction costs increased
Recovery of the market, fueled by the rise of Bitcoin to new peaks of all time and the improvement of macroeconomic conditions, saw the price of the ether (ETH) of almost 56% at a maximum of eight weeks of $ 2,734 on May 23, against a minimum of $ 1,750 on May 6.
This price force is reflected in Onchain’s activity, the number of daily transactions of Ethereum increasing by 37% in the last 30 days. These levels were observed for the last time in January 2024, when the media threshing around the approval of Bitcoin ETF based in the United States pushed the price of ETH over $ 4,000 for the first time since December 2021.
Ethereum’s daily average transaction costs have also soared, reaching more than 90 days of 0.0005 ETH ($ 1.33) on May 22.
The high number of transactions and the costs suggest that more users interact with the network, whether for DEFI, NFTS or other DAPPs. He suggests a high network activity, often in correlation with increased interest and market confidence.
In relation: Ethereum holders are behind the profit while Eth Price enters the “crucial field” for a break of $ 3,000
Historically, Ether’s price increased during periods for high use. For example, during the Boom DEFI 2021, the costs increased up to 0.015 ETH due to high demand.
As such, periods of high use with high costs indicate growth in network activity or bullish feeling, because more ETH are necessary for gas, pushing its price upwards.
The increase in TVL supports eTH price bulls
The increase in Ethereum network activity is also obvious during the analysis of the total locked value (TVL) on intelligent network contracts.
Ethereum TVL increased to $ 65.3 billion on May 23, compared to $ 45.26 billion on April 22, an increase of more than 44% in almost 30 days.
The positive signs include a 51% increase in deposits on the pendle, a tokenization protocol and 48% growth on ether.fi and eingenlayer.
Ethereum remains the undisputed leader by TVL, with market domination of 54%. In comparison, Solana’s domination is 8% and the BNB chain only commands 5% dominance in TVL among layers 1.
In addition, the FNB of American points ether experienced a total of $ 249 million in net entries between May 13 and 22, adding to the rear on the request.
Ether’s Taurus flag is alluding to $ 4,000
Eth Price has formed a bullbule graphic motif on the daily graphic, as indicated below.
A Taurus flag model is a bullish configuration that forms after the price is consolidated inside a drop for a high price increase.
The flag has resolved after the price broke over the trend line greater than $ 2,550 and could now increase as much as the height of the previous bull trend. This places the higher objective for the ETH price just below $ 4,000, up 56% compared to the current price.
Crypto analyst Michael Van de Poppe said that the price of the ETH had to maintain support by $ 2,400 to increase the chances of progressing to $ 3,500 and beyond.
As Cointelegraph reported, Ether’s upward trend should continue around $ 3,600 in May if key support levels are maintained.
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
