- The gas fees on the Ethereum network spiked and have reached as high as 159 Gigawei
- Due to this and the ongoing crypto market crisis, the coin’s price has dropped below $1,200.
- Over the last 24 hours, the prices of several other tokens have also fallen significantly.
Ethereum price action over the last day shows a significant price decline in place, as the second-largest cryptocurrency by market cap fell nearly 20% over the past 24 hours.
The crash that swept through the entire market was probably caused by the rumors of a “crypto war” and the subsequent crashes in FTX, BIT, and Solana. So far, Ethereum was one of the worst-hit cryptocurrencies on the market and has lost its position from the $1,500 mark after declining from $1,540.
The $1,540 zone has formed a long-term upside resistance that holds the cryptocurrency down. ETH must break through this line to the upside if it plans to reclaim the previous resistance zone at $1,620.
Alternatively, after hitting the $1,250 zone over the last day, the price of ETH could continue to decline and eventually hit the lower support level at around $1,000.
Ethereum Fees Spike by 10X
At the time of writing, the gas fees on the Ethereum network spiked and reached as high as 159 Gigawei for a simple $5 transaction.
Due to this and the ongoing crypto market crisis, the coin’s price has dropped below $1,200. Over the last 24 hours, the prices of several other tokens have also fallen significantly.
According to opinions from several analysts, this Spike in gas fees was caused by a wave of panic selling that followed speculation about Binance acquiring FTX, one of its biggest rivals.
According to a tweet from Changpeng “CZ” Zhao, the CEO of Binance, moving in on FTX may go a long way to relieving the strain on FTX’s liquidity crunch.
This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire https://t.co/BGtFlCmLXB and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ 🔶 Binance (@cz_binance) November 8, 2022
Ethereum (ETH) Price Analysis
Over the week, the entire crypto market consolidated until yesterday, when supports broke, and cryptos across the market started to sink.
The flagship cryptocurrency, Bitcoin, fell by more than 10%, eventually landing at a two-year low below the $18,000 zone.
Cryptos like Ripple were not spared either. XRP fell by about 13% to $0.40, while Cardano sank by 8% to $0.37. Dogecoin was one of the worst-hit cryptos, getting hit with a staggering 21% decline to the $0.08 zone.
Ethereum, the second largest crypto by market cap, fell by 20% and eventually hit the $1,250 zone, where it now sits.
Ethereum has broken through its major simple moving averages, indicating that the bears are now in control of the market
According to readings from the RSI on the daily chart, Ethereum is heading rapidly toward the oversold zone after a bearish crossover; the price of the cryptocurrency started to decline quickly and has now hit resistance around the $1,250
Although the RSI leans towards a market correction to the upside, nothing is guaranteed.
If Ethereum managed to trade lower than the $1,200 zone, the next stop might be a retest of the $1,000 zone it last tested in June this year.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate data. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.