Ethereum Gas Fees Falls To Record Low, Price Consolidates Around $1,000


After hitting a level last seen in November 2020, the average Ethereum gas fee is now under $1.

Low Ethereum Gas Fee

The Ethereum network faced transaction fees as low as 69 cents on Saturday, which has not happened in the past 19 months. The next day, gas prices reached $1.57, or 0.0015 ETH, which corresponds to the December 2020 numbers. Transaction costs on the network today ranged from 20 cents to just 20 cents, with 20 cents being the highest.

Gas prices in the Ethereum ecosystem ranged from $0.01 to $0.10 from July 2016 to May 2017. Users are now valued at a significant cost; In May 2021, the average transaction fee was $69 per transaction. The highest price for gas ever was $196,683 in May 2022.

Notably, the Ethereum blockchain has struggled to become widely used, much to the dismay of users, due to the high cost of gas or network fees, and the payments needed to complete a transaction on the blockchain. NFT holders are seen benefiting from the decline as the numbers dwindle.

Source: Bitinfo charts

DappRadar reported that 50,466 people traded their assets on OpenSea, up 10.14 percent from the day before. At the time of writing, the largest trading volume in the NFT market has increased by 34.18 percent to $15.92 million.

All of the top 20 groups, led by the Ethereum Name Service, DopeApeClub, God Hates NFTees, Bored Ape Yacht Club (BAYC), and Mutant Ape Yacht Club (MAYC), were transacted within Ethereum, according to data from DappRadar.

Related reading | Tag: Ethereum close below $1,000 could lead to a bigger downtrend

Further drop in prices

Ethereum price analysis is bearish due to consolidation near $1,050 and refusal to recover further. As a result, ETH/USD is poised for a further decline and above the local $1,000 support. Once this is done, the previous swing low at $900 should be challenged in the following week.

The decline approached the $1040-1000 area which acts as a close support and was accompanied by a sharp increase in demand pressure. The many smaller price rejection candles at this point represent attempts by sellers to break through this support which were unsuccessful.

Therefore, the renewed positive momentum may encourage buyers to attack the upper barrier once again at $1,260, giving ETH holders a chance to recover.

Ethereum

ETH/USD consolidates above $1k. Source: TradingView

At the beginning of the week, a new significant swing low was created in the Ethereum price action. After dropping more than 21%, the price of ETH/USD reached a new low at $1,000.

Since then, the rapid bullish reaction continued to the $1,115 level, where a rejection of a further recovery was observed on Friday. After lateral consolidation, lower local tops and bottoms were set.

Since then, the $1050 level has acted as a major trading range, with further gains denied this morning. As a result, ETH/USD is ready to drop further and try to surpass the current low of $1,000.

If the sellers continue to convince traders to break the lower support level, the next drop could lead to a 12.56% drop in ETH price to $880.

Related reading | Ethereum (ETH) Curves towards $1,000 as Doubt Fills Crypto Markets

Featured image UnSplash, chart from TradingView.com



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