Ethereum Gas Fees Plummet 90%, Bottom Formation Imminent

Ethereum's price has experienced a significant drop, with gas fees plummeting by over 90%, raising questions about the cryptocurrency's bottom formation. Despite the price decline, technical indicators suggest that Ethereum is forming a bottom around $2,500, with a high probability of a reversal.

Gas fees on the Ethereum network have fallen to below 1 Gwei, making it more competitive with other blockchains like Solana. This achievement comes after validators agreed to raise the gas limits, allowing more transactions to be bundled in a block and reducing fees. The upgrade to the network has made Ethereum more appealing, potentially leading to a price surge.

The sudden collapse in gas fees has made Ethereum's fees almost comparable to those on the Solana blockchain. This development could be a catalyst for Ethereum to form a bottom formation and ignite a bullish price reversal. From a technical standpoint, Ethereum price is approaching the key support level at $2,497, which is the midpoint of the daily wick formed after the February 3 crash. The Relative Strength Index (RSI) and Awesome Oscillator (AO) support this outlook, flashing signs of reversal and hinting at a resurgence of bullish momentum.

After a bounce from the key support level of $2,497, investors must pay close attention to $2,921 and $3,000, which are Monday's high and 200-day Simple Moving Average (SMA). These levels could pose stiff resistance to the Ethereum price's recovery rally. Overcoming these hurdles will open the path to critical overhead barriers at $3,119 and $3,306. Only after flipping these into a support floor will push ETH to $4,000 and beyond.

The significant drop in Ethereum gas fees by over 90% is a fundamentally bullish development that could potentially catalyze a bull run. Despite the current price drop, Ethereum is forming a bottom around $2,500, and technical indicators suggest a high probability of a reversal. As Ethereum's gas fees become comparable to those of Solana, it may regain its attractiveness, leading to a potential price surge. Ethereum price prediction notes a move to $4,000 is possible after a bottom around $2,500.