Ethereum [ETH] Gas fees equivalent to mining fees in Bitcoin surprisingly rose above its trend beginning September. While it was seen as a positive indicator at first, a recent report by Glassnode reveals that FairWin, a Ponzi scheme was clogging the network.
FairWin, an Ethereum based gambling app has emptied their contract balance since the news of the vulnerabilities in the Dapps rose. The total Gas price of Ethereum also plunged to levels before the fall.
The FairWin contract balance of 54,894 ETH worth $9.6 million has been distributed to several accounts.
Recent reports reveal that ‘daily gas shares for FairWin peaked at 49.9% on Sept 21st.’
The price of Ethereum is dependent on a lot of other factors apart from on-chain activity. Moreover, the volatility in gas prices has had a weak influence on ETH.
Ethereum [ETH] Price Analysis
Ether [ETH] has been bearish like most altcoins for the last couple of months. It bounced after testing the breakout levels at $165 to $220 in September. However, the downtrend continued after that.
The price of ETH at 5: 30 hours UTC on 2nd October 2019 is $174. In an uptrend, it expects to face resistance from the 50-EMA at $191.
Crypto-trader Escobar noted that he was bullish in the long term on ETH. He predicted a target of $482 on December 2019. Escobar’s tweet,
1D TF- Macro. Bullish on ETH
Nevertheless, for swing traders, Ethereum can be expected to record a new low. Crypto-trader Sawcruhteez suggested that Ethereum failed to confirm the bullish inverse ‘head and shoulder’ pattern and has broken below trend on the Bitcoin scale. He expects strong support in the 0.019-0.02 BTC range. However, a break below it could be detrimental.
Bitcoin’s price movements have greatly influenced the Ether [ETH] price in 2019. BTC is currently facing resistance from the 200-Day MA. It rejected its break-out attempt last day with a reversal at $8530.
Do you think Ethereum will record new yearly highs this year? Please share your analysis with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com