Key Notes

Key Notes:

Ethereum’s transaction fees have dropped to an average of $0.41, a sharp decline from a peak of $15.21.Low fees typically indicate reduced network congestion and a bearish market phase.Santiment believes that the current fee levels may signal a potential bullish move for Ether.

Ethereum’s transaction fees have dropped to an average of just $0.41, a stark contrast to the $15.21 peak witnessed over the last two years, according to Santiment. Historically, low fees signal reduced network congestion, often occurring when the market perceives ETH price ETH $2 769 24h volatility: 5.0% Market cap: $333.82 B Vol. 24h: $18.23 B as “low” or in a bearish phase.

ETH is currently trading at $2,687, up by around 12% in the past 24 hours with a market cap of $323.95 billion. Analysts believe that the current fee levels could lead to a potential bullish move for the cryptocurrency. Santiment explains:

“Just as extremely high fees can sometimes push traders away or cause short-term corrections, extremely low fees (like we’re seeing now) will often incentivize users back and allowing the network’s utility to rise to a prosperous rate.”

It is interesting to note that the ETH price has been trading within an ascending triangle, a bullish scanrio that historically precedes a breakout. Crypto analyst Ted noted the pattern on X, stating:

“ETH is still holding its uptrend support level. […] I think $4K Ethereum is just a matter of time.”

On the daily ETH price chart, the Relative Strength Index (RSI) is sitting at 40.74, indicating that the cryptocurrency is nearing oversold territory but not fully there yet. A bounce from this level would suggest renewed buying pressure.

The price is trading near the lower band of Bollinger Bands, a common signal for a potential price reversal. If Ethereum manages to reclaim the mid-band near $2,755, it could gain further bullish momentum. However, failure to hold above current levels could lead to a downside test of $2,416, which is the lower Bollinger Band and a crucial support zone.

Meanwhile, popular analyst Ali Martinez noted on X that the second-largest cryptocurrency is consolidating in a parallel channel since July 2022. It is currently testing the lower support trendline for the channel and losing it at $2,600 could lead it to drop to $2,000 or even $1,700, according to him.

With Ethereum maintaining its uptrend and low fees encouraging accumulation, ETH bulls have several catalysts in their favor.

Recently, Ethereum co-founder Vitalik Buterin announced a structural overhaul of the Ethereum Foundation, focusing on decentralization, censorship resistance, and privacy. The Foundation has also set up a new 3-of-5 multisig wallet for active participation in DeFi, allocating 50,000 ETH ($167 million) into various DeFi protocols.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it’s dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.

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