<img src="https://crypto.news/app/uploads/2023/11/crypto-news-ethereum-logo-inside-black-rock-trading-chart-background01.png” />
ethereum (eth) faces potential selling pressure, says one crypto analyst, citing how it surpassed the $2,300 mark. Whales have been actively making profits, and this could trigger massive selling pressure on the world's second-largest cryptocurrency.
ethereum Price Volatility
ethereum (eth) price has been positively impacted by the recent bullish momentum in global crypto markets, driven by bitcoin (btc) rising above the $43,000 price region.
eth maintains a distinctive market position attributed to its extensive developer community, widespread adoption, and pivotal role in decentralized finance (defi) and various blockchain applications.
Despite the current positive momentum, there are fears about the possible influence of whale selling pressure on the cryptocurrency price.
According to crypto analyst Ali Martinez, whales immediately made profits after ethereum hit $2,300.
The impact of sales from major holders could drive down the price of eth in the coming weeks. In a bearish scenario, the cryptocurrency could retest the $1,555 support level, and sustained selling pressure could push eth as low as $1,460 in the next two months, the analyst predicts.
Despite these concerns, overall market sentiment remains cautiously optimistic, leaving room for potential further growth in the cryptocurrency's price.
Although Ether's market capitalization of $282 billion lags behind bitcoin's $857 billion, both networks generate comparable protocol revenues.
In the last seven days, the bitcoin network accumulated $61 million in bitcoin-overtakes-ethereum-and-tops-61m-in-total-transaction-fees-over-last-7-days/” target=”_blank” rel=”noopener”>feewhile ethereum accumulated $61.5 million.
In addition to institutional interest, the price increase is driven by expectations of an SEC approval of the ETF. Despite the optimistic momentum, there are fears that increasing selling pressure could have repercussions on the eth price in the coming days.
ethereum's Rising Network Fees
The increase in ethereum network fees is closely tied to the expansion of its DeFi ecosystem and the widespread adoption of non-fungible tokens (NFTs).
The rise in defi and nft activities has boosted the network eth-gas-fees-high” target=”_blank” rel=”noopener”>feewith more people engaging in complex transactions, leading to prolonged periods of high fees.
The creation, transfer and trading of NFTs involve smart contract executions that consume gas and the associated costs may fluctuate depending on network congestion and gas prices. While ethereum's high gas fees pose challenges for nft creators and collectors, emerging solutions such as Layer 2 scaling and gas optimization provide optimism for a more profitable and accessible nft ecosystem.
The surge in DeFi and nft activity on the ethereum network since 2020 has led to widespread transaction activity, which has contributed to persistently high gas fees.
Currently, the average gas fee to mint an nft on ethereum is around $100, subject to variations based on network congestion, gas prices, and smart contract complexity.
At the time of writing, ethereum is trading at $2,348.23, according to data from CoinGecko.
