Ethereum Network Fees Reach Lowest Levels, Indicating Potential Price Rebound
The network fees on Ethereum have dropped significantly, reaching an average of $1.13, a price that hasn’t been seen since November 2022. Crypto analytics firm Santiment suggests that this could be a signal that ether (ETH) is preparing for a price rebound.
Ethereum’s Network Fees Plummet
Santiment reveals that the last time Ethereum gas fees went below $1.15, ETH experienced a price bottom, which eventually led to an increase in utility and a rise in price. The recent low cost of using Ethereum may indicate a repetition of this pattern, with lower ETH costs increasing the likelihood of utility and price growth.
The outflow of ETH from exchanges has also reached an all-time high, with approximately 110,000 ETH worth $181 million leaving crypto exchanges. This coincides with the launch of ETH futures exchange-traded funds (ETFs) in the U.S., which has generated significant anticipation in the market.
Market Excitement Surrounding ETH ETFs Launch
Investment firms such as ProShares, Bitwise, VanEck, Valkyrie, Kelly, Hashdex, and Volshares have launched a total of nine ETH futures ETFs. This expansion in institutional investment options for Ethereum has raised hopes of the price surpassing $2,000 before the end of 2023.
Despite an initial 4% leap in ETH’s price at the time of the ETFs launch, it quickly lost those gains within 24 hours and is currently hovering around $1,640. Additionally, the trading volumes for the new ETH futures ETFs have been lower than expected.
Hot Take: Ethereum Fees Hit All-Time Lows, Indicating Potential Price Rebound
Ethereum’s network fees have reached their lowest levels in years, suggesting a potential price rebound for ETH. Santiment’s analysis reveals that historically, when gas fees on Ethereum drop below a certain threshold, it has signaled a price bottom followed by an increase in utility and price. Additionally, the outflow of ETH from exchanges and the launch of ETH futures ETFs have generated excitement in the market. While the initial price surge didn’t sustain, there is still optimism about ETH surpassing $2,000 before the end of 2023. Keep an eye on these developments as they could impact Ethereum’s future performance.
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