Ethereum (ETH) price struggling at $355 resistance

Ethereum (ETH) price is struggling to get above the diagonal resistance at $355 as sellers remain in the control of the price action. 

Fundamental analysis: Lower transaction fees attracting users

Crypto behaviour analytics platform Santiment found that regular users are coming back to Ethereum, as a result of lower transaction fees. The latest data showed that Ethereum miners and some of its largest non-exchange addresses have been indicating sustained accumulation and boosted confidence in Ethereum’s long-term potential. 

Following a period of short-run sell-offs and redistribution by ETH block creators in August, the combined balance of s mining pools is increasing once again, rising by Ethereum mining pools is coming back up, rising by 50,000 ETH in the course of the last 30 days. 

Historically, large declines in combined holdings of Ethereum miners usually caused increased selling pressure and price declines, while periods ofHistorically, sharp declines in the combined balance of Ethereum miners often resulted in increasing selling pressure and price drops, while periods of rising collective balance of ETH miners triggered price rises.

Such an accumulation model has been indicated by the 100 largest non-exchange Ethereum addresses, known as whales. Since September 5, the collective balance of these whales alone has risen by 2,050,000 ETH, or close to $749,000,000, indicating higher confidence among ETH’s whales in face of precarious market actions over the past 30 days.

Furthermore, according to Ethereum data from crypto exchanges, there has been an ongoing fall in selling pressure and short-term exits of Ethereum owners. 

On the other hand, Ethereum deposits on a daily basis have plummeted from 55,027 on September 1 to a 3-month low of 23,821 on September 28, registering a -56.7% drop and pointing to a network-wide fall in selling pressure. Moreover, the number of ETH being transferred to common exchange wallets has declined from 298,000 on September 5 to just 80,350 on September 28.

Technical analysis: Buyers struggling

ETH/USD price printed the lowest weekly close in over 2 months as sellers remain in control of the price action. The positive for the bulls is that ETH still trades above the 200-DMA around $340. A push lower to this zone would facilitate a buying opportunity in ETH/USD.

Ethereum daily chart (TradingView)

However, buyers’ inability to get back above the ascending trend line (the blue diagonal line) is hampering ETH from trading higher. A break of this resistance would open the door for a test of the upper trend line near $390.

Summary

Santiment, a crypto behaviour analytics provider has observed that regular users are returning to Ethereum, thanks to lower transaction fees. On the other hand, Ethereum buyers are having difficulties in moving above the diagonal resistance at $355. 

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