Ethereum price could hit $3,700 target with largest drop in network fees

Ethereum price is currently below the 21-day SMA, while recovering from the recent drop. Analysts argue the altcoin’s range bound movement could be followed by a rally in Ethereum price. 

Ethereum price is on track to breakout

Ethereum price has started its recovery from the recent crypto market bloodbath. Due to its correlation with Bitcoin, ETH suffered a massive drop over the past two weeks. 

Alongside altcoins in the top 10, Ethereum price wiped out losses incurred over the past week. Interestingly, transaction fees on the Ethereum network recently hit their lowest point in 30 days, fueling a bullish narrative among investors. This is a key factor contributing to the current price rally in the Ethereum network. 

Ethereum’s network fees have been one of the biggest hurdles in its adoption. The reduction in transaction fees could propel Ethereum adoption among developers and new projects that were swept up by the altcoin's competition, Solana, Avalanche and Cardano. 

Ethereum has witnessed the largest 30-day drop in its network, and proponents believe this could increase the on-chain activity on the altcoin’s blockchain, driving volume higher. 

Analysts have evaluated the Ethereum price trend and predicted a rally in the altcoin. Ethereum price has crossed the 50-day SMA, through the altcoin is currently below 21-day SMA line, analysts believe it is primed for a breakout. 

FXStreet analysts believe traders could book profits in Ethereum at the $3,700 level. The demand center has extended to $2,900, and in the short term Ethereum price could hit the $3,700 target.