🚀🚀Ethereum’s Unusual Bullish Theory: “This Has Happened Before at Price Bottoms” 🚀🚀

According to one analyst, a significant drop in transaction fees on the Ethereum network could signal an upward trend in ETH’s future price.

“ETH gas fee bottoms usually form a price floor in the medium term,” said Ryan Lee, chief analyst at Bitget Research. Lee suggests that ETH prices tend to recover strongly after such a cycle, and if this recovery coincides with interest rate cuts, the market’s growth potential could increase.

Recently, gas fees, which are transaction fees on the Ethereum network, have fallen to as low as 0.6 gwei, with low-priority transactions costing just 1 gwei or less. This represents a drop of over 95% from the peak of 83.1 gwei recorded in March, when network activity was increasing.

Lee attributes this fee decrease to factors such as the shift in demand for Ethereum block space to faster and cheaper alternatives such as Solana and Layer 2 solutions, as well as the implementation of the Dencun upgrade, which increased network efficiency and reduced transaction costs.

Additionally, the decrease in the amount of ETH burned due to lower transaction fees has led to an increase in token supply.

Despite this current decrease in fees and the increase in ETH supply, Lee’s analysis highlights that historical trends point to a potential recovery in ETH prices in the medium term, especially when combined with interest rate cut cycles.

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