ETHGas native token, $waywhich has more than doubled from its June low of less than $0.10 to more than $0.20. In fact, the token is up over 750% from its February lows, making it one of the best-performing altcoins despite the widespread contraction in the crypto market.
In fact, on Saturday, June 13th, the bulls were on the verge of breaking through an important ceiling (trend line resistance, white dotted line) that has been blocking a further uptrend since the beginning of the year.
At the same time, technical indicators were hinting at the exhaustion of potential buyers. So in which direction $way‘s Parabolic movement?
What’s next after the ETHGas rally?
On the price chart, the latest leg of the rise was triggered from the golden zone (50%-61.8% Fibonacci level). In fact, this zone also acted as support in April, with $0.10 being the main demand line. $way Profit-taking sales are rapidly increasing.
That said, the rally could still extend to the $0.25 upside target, which could lead to an 18% upside potential. However, such movements can be observed in the following cases: $way It will definitely rise above the trend line resistance.
However, if it slumps due to a multi-month failure, $0.16 and $0.10 could be the next important support levels to watch.
It is worth pointing out that the RSI (relative strength index) on the daily chart has entered overbought territory. This suggests that buyer fatigue cannot be reversed.
When the feeling of fatigue creeps in, $way If the trendline resistance cannot be overcome, a cooling may occur.
What powers the ETH gas pump?
For those unfamiliar, ETHGas is a marketplace that allows users to purchase block space in advance, even when the network is congested. It was designed to address Ethereum’s gas fee issue, but goes beyond that.
This is a futures market, similar to a prediction market that helps determine when demand for block space will spike or subside. Therefore, users can also hedge accordingly.
In fact, to some extent there was a close correlation. $way Price action and the price of gas or demand for blockchain space.
especially, spike Gasoline prices from mid-May to early June. This means that the demand for blockchain was relatively high.
During the same period, $way Pump 250% and 130% respectively. Currently, the demand for blockchain is tapering, and if the correlation holds, $wayrallies may also cool down.
Final summary
- ETH gas $way The stock has doubled from $0.10 to $0.20, and is expected to rise by another 18% if the uptrend continues.
- However, the recovery could potentially cool as technical indicators indicated a possible exhaustion of buyers.
