ETHGas GWEI Token Doubles from June Lows Amid Trendline Resistance Test

ETHGas native token GWEI doubled from June lows below $0.10 to over $0.20, with bulls approaching a key trendline resistance on Saturday the 13th of June. The rally was triggered from the golden zone at 50%-61.8% Fibonacci levels, while the daily RSI entered overbought territory. The token was up over 750% from February lows, making it one of the best-performing altcoins despite the broader crypto market contraction, with price action showing correlation to Ethereum gas price spikes in mid-May and early June.

GWEI Technical Analysis Shows Trendline Resistance Test

The latest leg of the rally was triggered from the golden zone at 50%-61.8% Fibonacci levels. This zone acted as support in April, making the $0.10 level a key demand line. Bulls were on the verge of cracking a key ceiling that has blocked further uptrend since the beginning of the year, marked by trendline resistance on the chart.

Source: GWEI/USDT, TradingView

The upside target stands at $0.25, representing a potential 18% gain if hit. Key support levels to watch are $0.16 and $0.10. The daily chart RSI entered the overbought territory, suggesting potential buyer exhaustion.

Gas Price Spikes Correlated with GWEI Rallies

ETHGas is a marketplace that allows users to buy blockspace upfront, even during network congestion. It was designed to address the Ethereum gas fee problem and functions as a futures marketplace that can help gauge when demand for blockspace will spike or ease.

There was a spike in gas prices in mid-May and early June, indicating relatively higher demand for blockchain space. Over the same period, GWEI pumped 250% and 130%, respectively. Currently, the blockchain demand has tapered off.

Source: Etherscan

The correlation between GWEI price action and the price of gas or demand for blockchain space has been observed, with the token's performance tracking gas price movements during the mid-May and early June periods.

FAQ

What price levels did GWEI reach from June lows? GWEI doubled from June lows below $0.10 to over $0.20, and bulls were testing trendline resistance on Saturday the 13th of June with a potential upside target at $0.25.

How did gas price spikes correlate with GWEI performance? Gas price spikes in mid-May and early June corresponded with GWEI rallies of 250% and 130% respectively, demonstrating a correlation between blockchain demand and GWEI price action.

What technical levels are key for GWEI? The golden zone at 50%-61.8% Fibonacci levels triggered the latest rally, with support at $0.16 and $0.10, while the daily RSI entered overbought territory indicating potential buyer exhaustion.