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Ethereum Gas Fees Plummet By 95% As ETH Struggles: Is FOMO Dead for Good?

Ethereum is sliding, looking at the formation in the daily chart. Even though price action over the weekend pointed to strength, the fact that it didn’t even rewind half of May 10 losses is a concern. As it is, the path of least resistance is southwards despite the solid fundamentals surrounding Ethereum. How prices react at the April 2024 lows and support, and the $3,300 immediate liquidation level will shape price action in the medium term.

Traders are closely monitoring Ethereum, considering the impact it might have on altcoins. So far, the coin is moving horizontally, firm on the last day but down 7% in the past week of trading. Even though the upside remains, from a top-down preview, sellers are pressing on, rejecting any higher attempt. With lower prices, engagement is also low, looking at the average trading volume in the past day at around $8.6 billion.

Ethereum Daily Chart for May 13

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The following Ethereum news developments are worth watching:

  • Ethereum gas fees continue to fall, reflecting declining FOMO and possibly fear setting in. Although the impact of Dencun is being felt, the nearly 95% drop points to more underlying factors. It is overly positive, but should fees fall due to rising prices, on-chain activity on the mainnet and layer-2 could soar. In this case, gas will likely reset to average levels.
  • JP Morgan analysts are optimistic. In a recent notice, they said the United States SEC might, after all, approve a spot Ethereum ETF. They didn’t give any timeline. It is highly likely that the Commission won’t green-light this product this year.

Ethereum Price Analysis

ETH/USD prices have been moving horizontally in the past three days or so, per the candlestick arrangement in the daily chart.

The Friday sell-off confirms that the mid-April bear breakout formation is still valid and guiding in the short-term.

Unless there is a reversal above $3,100 in the days to come, sellers are firmly in control, and traders should align their trades with this outlook.

Only buyers might have reason to buy once there is a close above $3,300.

However, looking at the current setup, ETH bears could press on, forcing prices below April lows and $2,800, especially if today ends up bearish.

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Dalmas Ngetich
Dalmas Ngetich
Technical Analyst and News Reporter
Dalmas is a technical analyst and news reporter covering Forex, commodities, crypto, NFTs, blockchain, DeFi, and blockchain.
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