Ethereum’s lowest gas fees since May 2024 hint at subdued network activity ahead of potential ETF approval.
Historical data shows Ethereum prices often align with fluctuations in gas fees, indicating correlated market dynamics.
Monitoring gas fees remains crucial as they reflect Ethereum’s network demand and potential price movements.
The upcoming approval of the ETH Spot ETF has many Ethereum enthusiasts excited. As highlighted by Layer4Crypto, an analytics platform on X, gas fees on the Ethereum network are currently at their lowest since May 2024. This drop suggests quieter network activity, which is reflected in the gas fee trend over recent months.
Observing this trend, it becomes evident that gas fees and Ethereum prices often move in tandem. When gas fees rise, Ethereum prices tend to follow, indicating increased demand and network usage.
Gas fees have shown significant fluctuations throughout the year. In January, gas fees were relatively low, around 7-8 Gwei. However, mid-March saw a noticeable peak, with fees reaching above 70 Gwei. After this peak, gas fees dropped, experiencing multiple smaller peaks and troughs.
By early May, gas fees reached a notable low of around 8 Gwei, as indicated by a red circle on the chart. Following this dip, gas fees increased again but did not reach the previous March high. Towards early July, gas fees began to rise from another low point marked by a red circle.
The average ETH price has mirrored this volatile trend. Prices started high in January, above $3,600. After peaking in mid-March, the price began to decline, reflecting the gas fee trend.
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Early May saw a significant drop in prices, correlating with the low gas fees circled in red. Despite recovering after the dip, prices did not return to their previous highs. By early July, the ETH price was around $2,200, showing a slight increase from the recent low.
Source: X
Both show peaks and troughs around the same times. High gas fees often coincide with higher ETH prices, suggesting increased network activity and demand. This pattern is crucial for investors and users alike, highlighting the importance of monitoring gas fees as an indicator of price movements.
The live Ethereum price at press time stands at $3,362.64, with a 24-hour trading volume of $12,497,840,655. Ethereum has seen a 5.25% increase in the last 24 hours.
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