Ethereum gas prices have been dropping for a while now. It rose to an all-time high in 2021 when the bull market was in full bloom. Then continue to maintain the high altitude, going up at different intervals to high points. At its highest, the average fee for ETH gas was as high as $69. However, with the recent downtrend and the market losing momentum, gas charges collapsed and the recent drop saw its lowest in nearly six months.
Ethereum fees decreased
Ethereum gas graphs for the past three months showed a consistent downtrend which saw average gas charges drop to $5.98 in early March. This was the lowest gas fee in seven months at this point. However, a gas fee hike in early April should quickly put an end to the $43 gas fee again. This may only be temporary given that the sharp downtrend that followed has sent ETH gas fees towards six-month lows.
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As of Monday, the Ethereum gas fee has fallen to an average of $8.78. It represents a drop of $76 per cent from its April high to put it at levels seen in early March. The decrease in ETH fees also translates to a decrease in the Layer 2 accumulation fee, which has a much lower fee than the transaction costs on the mainnet.
The lowest recorded fee rate dropped to $0.03 per transaction on the Sunday recorded on the Metis Network. Others like Loopring and Zksync have seen their transaction fees drop to $0.05.
Bitcoin fees are also down The average transaction fee as of early Monday was $1.04.
ETH on the charts
The current downtrend appears to be notable not only in transaction fees but in the price of the digital asset. Ethereum price fell below $3,000 in the early hours of Monday, and while a small recovery took place, various dips saw the digital asset reach the $2,800 price range before markets opened on Monday.
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With the sell-off rocking the market, indices have naturally turned bullish for the digital asset, completely skewed in favor of the sellers. After breaking the $3000 mark, the next major support level is now at $2900 although the bears continue their efforts to drag it lower.
ETH has now fallen below the 50 day moving average. This puts the cryptocurrency’s short-term outlook in the negative for the majority of traders, and the long-term outlook doesn’t look good either. The digital asset is trading at $2,909 at the time of writing.
Featured image from Shrimpy Academy, chart from TradingView.com