Ethereum’s average fees are at an extremely low level
Chain analysis firm Saniment reports that average Ethereum fees are at an extremely low level, with traders paying a meager $2.54 per transaction currently. Santiment notes that “this is the lowest ETH price level since July,” which may be a historical sign for the price, as it is said, “historically, ETH prices rise after trades averages fell 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.
According to glass knot alerts, the number of Ethereum transactions just hit a one-month low of 43,924,994, following lower usage of the Ethereum network. With fewer people using ETH to transact and buy NFTs, the price of Ethereum then fell, along with gas fees.
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 top drawdown target for the week, dropping $154 million. The funds were withdrawn during a turbulent trading week in which the price of Bitcoin fluctuated near $30,000.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 has seen significant outflows, resulting in Ethereum year-to-date net flows of negative $239 million.
