Ethereum (ETH) Fees Spike to 87 Gwei as Memecoin Frenzy Continues

• Ethereum network fees surged due to the meme coin frenzy.
• Bears take control of the ETH market, causing a 1.01% drop.
• The ADX rating suggests increasing bearishness in the ETH market.

The current enthusiasm for memecoin has led to higher gas costs on the Ethereum network, which peaked at 87 gwei on May 2. This price rise is the consequence of the enthusiasm causing excessive congestion.

Last time Ethereum median gas was this high was in May 2022 ⛽️

source: https://t.co/bjIOV2m4Cd pic.twitter.com/H2sqHAtvaZ

— hildobby (@hildobby_) May 4, 2023

While the frenzy may generate short-term revenue, it increases user fees in the long run. The highly anticipated Ethereum Shanghai blockchain upgrade, dubbed “Shapella” by its devoted user base, has also increased overall traffic on the system. The excitement around the release has resulted in a recent rise in blockchain transactions.

The positive momentum failed to break beyond the 24-hour high of $1,915.87 due to the market slowing. As a result of this setback, bears seized control of the ETH market, sending the price down to an intraday low of $1,868.63. Bears remained in control of the ETH market at the time of writing, inflicting a 1.01% drop to $1,874.09.

During the drop, ETH’s market capitalization and 24-hour trading volume fell by 1.02% and 10.31%, respectively, to $225,737,554,782 and $7,264,508,366.

ETH/USD Technical Analysis

The Average Directional Index (ADX) rating of 19.36 and trending south indicates that the ETH market is becoming more bearish. This indicator assesses the intensity and direction of a trend, and a value less than 25 indicates a weak trend.

The downward direction of the ADX indicates that sellers are in control, which might lead to greater price decreases in the near future.

ETH has a Relative Strength Index (RSI) of 46.79 and is heading below its signal line, indicating a bearish trend. This indicates that ETH is declining, and investors may want to consider selling their shares or waiting for a better entry time.

As the Ethereum network experiences a surge in gas fees and bears take control of the market, investors should consider their options and wait for a better entry time.

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