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Ethereum price on track to $4,000, network fee has dropped 90% since November 2021

  • Ethereum price is set to recover from the recent drop as its network fee drops 90% since 2021. 
  • Mark Cuban, a billionaire investor who is bullish on Ethereum, believes the merge is one of the most anticipated upgrades. 
  • Ethereum shows a stronger correlation with S&P 500, fueling a bullish narrative among investors. 

Ethereum price could recover from its downtrend and start to climb to $4,000 as investors and analysts remain bullish on the altcoin. High network fees, considered one of the biggest deterrents for investors joining the Ethereum blockchain, have dropped 90% since November 2021. 

Ethereum set to rally in Q2 2022

Ethereum price is set to retest its support zone as the altcoin prepares to break out of its downtrend. As ‘The Merge’ inches closer, one of the key developments is the reduction in Ethereum transaction costs. 

Ethereum network fees have dropped 90% since November 2021, an important milestone for the altcoin. Analysts at crypto data intelligence platform Santiment believe that the Ethereum price surge could be a result of the drop in transaction fees. 

Average gas fees sit at $5.81, an affordable level compared to the last eighteen months. Ethereum gas fees hit $69 in May 2021, at its highest point. 

Analysts believe Ethereum could surpass its competitors and dominate the altcoin market. Arthur Hayes, BitMEX CEO, believes Ethereum price could outshine its layer-1 competitors. 

Mark Cuban, a billionaire investor and owner of NBA’s Dallas Mavericks, believes the merge is one of the most bullish and anticipated events in Ethereum. Cuban believes Ethereum price could outperform other cryptocurrencies and told Fortune in an interview, “I am very bullish.”

Interestingly, another positive factor contributing to Ethereum’s price rally is the rising correlation with S&P 500 and tech stocks. 

Analysts have evaluated the Ethereum price trend and predicted a spike in the altcoin. FXStreet analysts note Ethereum price has moved above the 200-day moving average, and indicators in the altcoin’s chart remain bullish. Analysts have predicted an Ethereum price rally to $4,000.

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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