ETHGas's native token, GWEI, has seen a significant surge in value over the past few months. From its lows of below $0.10 in June to its current price above $0.20, GWEI has more than doubled in value and has even surpassed some altcoins by a wide margin.
This increase is not without precedent, as ETHGas's token has seen an impressive 750% rise from February lows, making it one of the top performers despite the broader crypto market contraction.
The trendline resistance and key ceiling have been major hurdles for GWEI, but bulls are on the verge of breaking through this barrier. However, technical indicators suggest that buyer exhaustion may be setting in, which could potentially cool off the rally.
The price chart shows that the latest leg of the rally was triggered from the golden zone (50%-61.8% Fibonacci levels), where GWEI acted as a support line back in April. This could indicate potential for further gains, but it's essential to note that GWEI is trading above its trendline resistance and could be at risk of a pullback.
The correlation between GWEI price action and blockchain demand has been observed, with gas prices spiking in mid-May and early June. This led to a 250% and 130% pump for GWEI respectively. As demand tapers off, it's possible that the token's rally could slow down.