Several positive developments have been cited lately around the Ethereum blockchain network, one of which is the recent significant drop in the network’s transaction fees after a period of extremely high costs, which has historically been a major challenge for users.
Ethereum Transaction Cost At A New Low
The average transaction fees on the Ethereum network have fallen sharply to new lows, offering users relief as they enjoy cheaper transactions. Santiment, a leading market intelligence and on-chain data platform, reported the advancement in a recent post on the X (formerly Twitter) platform, reflecting a notable drop in on-chain activity and a rise in the adoption of scaling solutions.
It is important to note that as the blockchain approaches its tenth year of existence, transfer fees have undergone significant changes over time. This result suggests that the Ethereum network is becoming more efficient, potentially leading to increased acceptance and usage as the high transaction costs become less of a barrier.
According to data from Santiment, Ethereum’s average transaction cost is presently valued at $1.63, which is a reasonable amount that has prompted traders to make more transfers in the past. Santiment further shared a chart offering insights on ETH’s transaction costs at certain levels.
In the 4-tier visual illustration, the platform highlighted that when ETH average network fees are under $2, it enhances utility, which is common with market bottoms. Meanwhile, the fees usually range between $2 and $6 during flat or chopping markets.
Also, Santiment noted that fees higher than normal, between $6 and $10, typically occur when FOMO increases during bull runs. Lastly, when Ethereum’s transaction costs are above $10, there is suppression of utility, mostly common with market tops.
Since the market is stabilizing, Ethereum’s lower gas prices may help keep the ecosystem’ Decentralized Apps (dApps) and Decentralized Finance (DeFi) protocols moving forward as it reduces the obstacle to participation faced by many individuals over time.
ETH’s Price Heading Toward The $2,400 Level Soon?
Despite these positive advancements in the network, ETH’s price is still demonstrating a bearish movement. It is currently approaching $2,600, a level last seen over a week ago following a broader market recovery. As the altcoin continues to struggle, experts at IC News have pointed out the potential for further price decline to the $2,400 level.
According to IC News, Ethereum’s price is retesting the triangle pattern trendline as a possible support with a long-red candle of 2.7%. Supported by $19.2 billion in trading volume, the drop indicates sellers’ determination to prevent more rallies.
The platform claims a daily ETH candle falling below the 100-day Exponential Moving Average (EMA) and $2,650 due to bearish momentum may provide bears with the right strength to drive prices lower. As a result, ETH could experience a price drop of about 9% looking for support at $2,400.
Featured image from Unsplash, chart from Tradingview.com
Source: https://bitcoinist.com/ethereum-sees-sharp-decline-in-transaction-fees/