Key Takeaways:

Average gas fees on Ethereum declined substantially in June

ETH price continued its bear run that began on June 3
Ethereum cryptocurrency, blockchain technology decentralized currency coin, conceptual image with selective focus

NEW DELHI (CoinChapter.com) — Average gas fee on the Ethereum network saw a steady decline in June following the meme coin frenzy-fuelled spike in transaction fees in May.

Crypto journalist Colin Wu noted that apart from the memecoin market, “a large number of MEV Bot activities” were also responsible for the spike in ETH gas fees in May. The spike propelled Ethereum gas fees to their highest level in the past 12 months.

Beginning in April, meme tokens like Pepecoin, Wojak coin, Aped, etc., captivated investors looking to make quick profits. Moreover, the spike in gas fees increased the ETH burn rate, adding a bullish cue for ETH price action.

However, when the memecoin frenzy cooled as the markets entered June, the daily median gas fees shriveled 85% from May 5’s high of 142 gwei. Per data from Etherscan, stablecoins and MEV bots accounted for nearly half of Ethereum’s daily gas fees on June 5.

Crypto intelligence firm Santiment noted the fall in gas fees, highlighting the drop in gas fees from 2023 high of $14 per transaction in May. Moreover, the platform highlighted that the ETH percentage of supply on exchanges dropped to 9.9% on June 1, an all-time low.

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Declining supply on exchanges indicates traders choose self-custody over exchanges, suggesting a hodling mindset.

ETH Price To Reach $11,800 By 2030 – VanEck

In a recent report, investment manager VanEck predicted that ETH prices could rally to $11,800 by 2030. The report stated that Ethereum’s recent hard fork, which introduced staked ETH withdrawals, made it a “major new competitor” to US treasury bills.

The firm, with an AUM of $76.4 billion, mentioned that the price projection includes the assumption that “ETH takes a 70% market among smart contract protocols.”

VanEck used cash flow projection and fully diluted valuation (FDV) calculations to arrive at the prediction.

We project Ethereum revenues, deduct a global tax rate and a validator revenue cut and arrive at a cashflow figure. We then apply multiple estimates by applying a long-term estimated cash flow yield of 7% minus the long-term crypto growth rate of 4%.

VanEck explained in its report.

Afterward, the firm divided the 2030 FDV expected tokens in circulation and discounted the final number by 12%.

ETH Price Falls Over The Weekend

Meanwhile, ETH price fell by nearly 2.6% since June 3 to form a daily low near $1,860 on June 5. The bulls have struggled to spark a strong uptrend as they defend the 20-day EMA (red wave) and 50-day EMA (purple wave) support confluence.

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A multi-week descending trendline resistance has repeatedly quashed Ether’s uptrend efforts. Should the EMA confluence support fail, ETH price might drop to its 100-day EMA support near $1,795.

Moreover, breaching the immediate support could push the Ethereum token price to test support near $1,670 before recovering.

Conversely, breaking above the descending trendline resistance could provide ETH price the impetus to reach $1,930. Flipping the immediate resistance level could attract buyers to the market, helping Ether’s price rally to the resistance level near $2,050 before correcting.

The RSI remained neutral for ETH, clocking at 51.08 on the daily timeframe.

The post Ethereum Gas Fees Drops In June As MemeCoin Frenzy Cools Down appeared first on CoinChapter.

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Filed under: Bitcoin - @ June 5, 2023 8:09 pm