Ethereum Fees Drop to New Lows; This Is a Historic Sign in Relation to Its Price

On-chain analytics firm Santiment reports that Ethereum’s average fees are at an extremely low level, with traders having to pay a meager $2.54 per transaction presently. Santiment notes that “this is the lowest ETH cost level since July,” which may be a historic sign for the price, as it says, “Historically, ETH prices rise after average transactions dip below $5.”

The cost of transactions on the Ethereum network has dipped to its lowest in 10 months. Gas fees slipped as the ETH price took a beating as the market declined amid inflation concerns.

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According to Glassnode alerts, the Ethereum number of transactions just reached a one-month low of 43,924.994, following less usage of the Ethereum network. With fewer people using ETH to make transactions and buy NFTs, Ethereum’s price subsequently declined, alongside gas fees.

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At press time, ETH was trading at $1,973, remaining below the $2K mark, the psychological level that played a key role during the rally of July 2021. However, a key barrier is set at $2,644. A break past this number could allow Ethereum to rally on toward $3K.


Ethereum accumulation increases

According to CoinShare’s weekly Digital Asset Fund Flows report, Bitcoin (BTC) was the primary focus of withdrawals for the week, with a decrease of $154 million. The funds were removed during a bumpy week of trading in which the price of Bitcoin fluctuated near $30,000.

However, Ethereum experienced fewer outflows than in previous weeks, suggesting that Ethereum accumulation might be in progress. In the past week, Ethereum recorded only $300,000 worth of ETH in outflows.

In the past, Ethereum witnessed large outflows, which caused year-to-date net flows of Ethereum to stand at a negative $239 million.

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