ETH on 10 May showed signs of potential bullish recovery after a heavily bearish performance, especially in the last five days. Undeniably, the market is still not off the hook with the constant highs of the FUD.
To that effect, ETH was trading at $2,308, at the time of this analysis, it was further down by 3.72%. However, the NFT growth through Instagram might have good news for ETH holders.
Meta, formerly known as Facebook, reportedly plans to integrate NFT support into Instagram. The integration will support multiple blockchain networks, including Ethereum, Flow, Solana, and Polygon.
Of NFTs and ETH…
NFTs have so far made significant contributions to the Ethereum network’s growth and utility. Meanwhile, Instagram is one of the biggest social media platforms in the world. Support for Ethereum NFTs will likely lead to a wave of NFT volumes on the Ethereum network, potentially boosting ETH demand.
Perhaps such an outcome would contribute to more upside. Notably, on 9 May, ETH bounced back from a low of $2,225 to $2,378. It’s important to note that the tiny hope in the form of a green candle on 10 May was invalidated by bears on 11 May.
Source: TradingView
ETH’s RSI is restrained near the 30-mark, thus, suggesting that the token is clearly in the oversold area. In fact, the token has experienced some accumulation as indicated by the MFI. The sharp drop in the volume from 10 May to 11 May remains a concern for the investors.
Moreover, the market is in a state of heavy FUD, which might translate to continued sell-offs over the next few days. Some analysts opine that there is still a probability that ETH can secure more downside.
The impact of lower ETH prices on the NFT market
ETH’s ongoing lower prices translated to lower gas fees for NFT transactions. The ‘Gas Used’ metric on Santiment revealed a sharp drop in the gas used and is at its lowest considering the last four weeks.
However, NFT trade volumes have also dropped to their lowest monthly levels on account of the ongoing bearish conditions.
Source: Santiment
Considering the aforementioned information and data sets, NFTs alone, may not provide enough buying pressure to keep the ETH token on a bullish trajectory. Even so, they do contribute to the overall ETH demand and would likely contribute to more upside during bullish market conditions.