Ethereum aims to recover $2,817 amid 498% increase in transaction fees

• Ethereum transaction fees have increased by 498% in the past ten days amid increased activity on the chain.
• Ethereum ETFs saw outflows of $0.1 million, the lowest day of negative flows since launch.
• Ethereum is targeting $2,817 and could see significant gains if it holds above the key trendline.

Ethereum (ETH) is trading around $2,690 on Friday, up more than 2% after a 498% increase in transaction fees over the past ten days. Meanwhile, ETH is trying to recover a key support level around $2,817.

Daily Market Reasons: Ethereum and ETH Burned Transaction Fees See Increase

Ethereum transaction fees rose to a seven-week high in recent days following increased on-chain activity on its blockchain, Coinbase noted.

According to analysts David Duong and David Han, decentralized exchanges (DEX) and ETH transfer volumes increased by 7% and 19% in the past week. The increased activity led to a subsequent increase in transaction fees.

Average gas fees and ETH transfer volume

“The average gas price over the last 10 days, September 16 – 26, is up 498% over the previous 30-day average, and the average Ethereum transaction now costs $1.69, compared to $0.09 at the beginning of the month” , the publication said. analysts.

The increased transaction fees also caused an increase in the total fees of ETH burned daily, rising more than 900% to 2,097 ETH on Thursday, according to CryptoQuant data.

Rising gas taxes and ETH burned could lead to deflationary pressure and signal potential upward momentum among Ethereum investors.

ETH Total fees burned

Meanwhile, Ethereum ETFs saw net outflows of $0.1 million on Thursday, the lowest outflow day since launch. BlackRock’s ETHA and Fidelity’s FETH continue to see positive flows with inflows of $15.3 million and $15.9 million, respectively. On the other hand, Grayscale’s ETHE resumed its negative flows after two days of zero flows, recording outflows of $36 million.

Ethereum could be set for a massive rally in the coming months

Ethereum is trading around $2,690 on Friday, up 2.2% on the day. According to Coinglass data, ETH saw $18.85 million worth of liquidations in the last 24 hours, with long and short liquidations accounting for $6.66 million and $12.19 million, respectively.

Over the past week, Ethereum has traded above a key downtrend line that has kept prices at bay since June. If ETH continues to trade above the trendline, it could see a massive rally in the coming months.

ETH/USDT Daily Chart

ETH saw similar moves from August to November 2022 and July to October 2023, trading below a similar trendline before breaking out and rising over 94% and 164% respectively in the following months.

In the short term, ETH is looking to sustain a move above resistance around $2,707. ETH could recover the key $2,817 level if it does not see a rejection around this resistance.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) momentum indicator are above their neutral levels, with the AO showing consecutive green bars. This indicates a prevailing optimistic momentum among investors.

A daily close of the candlestick below the $2,207 support level will invalidate the bullish thesis.