Ethereum: USD/ETH (ETH=) Fees Fall Under $0.01 Again
Over the past few months, an odd trend has been seen: the Ethereum blockchain itself has started to gain traction, even as ETH’s price fell, with there being a large uptick in transaction volumes and overall network activity.
It got to a point when last month, the fees that Ethereum users paid to use their network surmounted that of Bitcoin users. In fact, on September 22nd, the average standard transfer for ETH cost some $0.045 to $0.064, while Bitcoin’s recommended next-hour confirmation fee was a mere $0.03.
However, this changed recently when one of the large contributors to this transaction fee explosion for Ethereum suddenly fell off the face of the Earth. Ouch.
ETH Fees Plunge
If you were paying dozens of cents for Ethereum transactions last week, you weren’t alone. Then, the network was experiencing a mass amount of transfers and smart contract processes, leading to a large increase in the cost of using the blockchain.
While many attributed this trend to grow in decentralized finance applications or Tether, the blame should’ve been placed squarely on FairWin, a seeming Ponzi scheme that is responsible for some 50% of Ethereum’s fuel, known as “gas”, over recent weeks.
But over the past 48 hours, the scheme, which held over $10 million worth of ETH at its peak, has collapsed. And this, interestingly, has resulted in a strong decrease in network activity and transaction fees on the network.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 196.40.
The projected upper bound is: 199.94.
The projected lower bound is: 148.53.
The projected closing price is: 174.23.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FOREX ETH=), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 67.5492. This is not an overbought or oversold reading. The last signal was a sell 10 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 43.96. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 12 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -36. This is not a topping or bottoming area. The last signal was a buy 4 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 8 period(s) ago.
Rex Takasugi – TD Profile
FOREX ETH= closed down -2.590 at 174.900. Volume was 58% below average (consolidating) and Bollinger Bands were 22% wider than normal.
Open High Low Close Volume___
177.730 178.800 173.840 174.900 29,745
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 174.68 184.79 208.41
Volatility: 139 88 88
Volume: 86,032 72,038 64,617
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX ETH= is currently 16.1% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of ETH= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on ETH= and have had this outlook for the last 5 periods.