Santiment Projects an Imminent ETH Rally to $1,900 as Fees Drop to Record $2.45

A significant decrease in Ethereum gas fees could put ETH in a bullish direction, resulting in a breakout to $1,900, according to Santiment. 

Transaction costs on the largest smart contract platform, Ethereum, have recorded a much-appreciated reduction after a dramatic spike in early July. Behavioral analysis platform Santiment shared this positive development on Monday. 

Due to the potential renewal of investors’ interest expected with this drastic reduction in fees, Santiment projects a bullish price recovery back to the $1,900 territory.

The Santiment disclosure revealed that Ethereum became highly expensive for users as network gas fees eclipsed $7.40 per transaction in the early days of July. 

In March, average fees on the network were around $12.5 per transaction. Following the rapid surge earlier this month, the average fee per transaction on Ethereum returned to an affordable $2.45 on July 10.  

Bullish Expectations for ETH

According to Santiment, this development could trigger bullish sentiments for the second-largest crypto by market cap amid the dull state of the broader market. In particular, the leading analytic platform submitted that Ether (ETH) could return above $1,900 in the coming weeks or months. 

Other metrics such as daily active addresses, social volume, and development activity further bode well for ETH price. 

As of July 11, the daily active addresses on Ethereum saw a spike, hitting 303.64k, as disclosed by Santiment. Likewise, the development activity on the smart contract-enabled blockchain appreciated by over 104% in the last 30 days. 

With these many positive developments around the project and the recent reduction in network gas fees, ETH could sustain its upward movement. On the other hand, industry players believe Vitalik Buterin’s latest stance about the Ethereum staking protocol not being safe could be a setback. 

At press time, ETH is changing hands at $1,871, while it shows a decline of over 4% in the last seven days. Meanwhile, Bitcoin (BTC) is up by 7.17% in the past 30 days.