Ethereum (ETH) Price Faces Selling Pressure
The price of Ethereum (ETH), the world’s second-largest cryptocurrency, is currently trading below $1,600 and is experiencing strong selling pressure. Despite struggling to maintain upward momentum, certain network parameters such as gas fees are showing signs of cooling down.
Gas Fees on Ethereum Network Reach Lowest Point in 2023
Santiment, an on-chain data provider, has reported that fees on the Ethereum network have reached their lowest point in 2023. Transaction costs have dropped to just $1.15. This decrease in fees typically corresponds to an increase in Ethereum’s utility, as lower fees make it more cost-effective to use the network. As utility rises, it can contribute to the recovery of Ethereum’s market capitalization levels.
On-Chain Metrics for Ethereum Decline
According to CoinGape, various on-chain metrics for Ethereum, including network activity, have decreased since the Shapella upgrade. Additionally, a significant amount of ETH staking is concentrated in a few liquid staking protocols like Lido Finance.
Hot Take: Ethereum Faces Selling Pressure Amid Cooling Gas Fees
Ethereum is currently facing selling pressure as its price remains below $1,600. However, there is some positive news regarding gas fees on the network, which have reached their lowest point in 2023. Lower transaction costs make it more cost-effective to use the Ethereum network and can contribute to its utility and market capitalization recovery. Despite this, certain on-chain metrics have declined since the Shapella upgrade, and there is a concentration of ETH staking in a few protocols. Overall, Ethereum’s performance will depend on how these factors evolve in the coming weeks.
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