Ethereum analysis for 09/10/2018

After the September 12 price of the ETH/USD reached a low at the level of $172, interest grew strongly. Such low levels were seen in June 2017. Falling ETH prices since the beginning of the year meant that the owners and investors were wary of using the digital currency as a safe medium of exchange.

Increased activity may also be due to the fact that Ethereum currently only uses 50 percent of its daily bandwidth, which in turn made network fees drop below one cent (USD), even after last week's processing of 600,000 transactions. In the case of a sharp increase in the number of transactions, one can expect increases in ETH.

The increase in the number of ETH transactions can be attributed to the newly available network capacity, releasing many of its GAS resources, with a daily limit of 8 million GAS. On average, one ETH transaction via a "smart" contract requires approximately 21,000 GAS units. Another possible explanation for the increase in transactions is that investors could have accumulated more digital currency, given relatively low prices. More ETH means more use of the token.

Let's now take a look at the Ethereum technical picture at the H4 time frame. Currently, prices have stabilized in a narrow range of 200- 240 USD as the market continues the horizontal trend. The next technical resistance is seen at the level of 235 USD and the nearest support is seen at the level of 205 USD. The key technical support, however, is still located at the level of 164 USD and to get there, the bears will have to break through the support zone between the levels of 205 - 199 USD, so it will not be easy.

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