đ Unusual Bullish Theory for Ethereum $ETH : âIt Always Happens at Price Bottoms đ€
One analyst suggests that a significant drop in Ethereum network transaction fees could signal a bullish trend for $. đđ°
âWhenever gas fees of $ETH bottom out, it usually signals a price bottom in the medium term,â says Ryan Lee, lead analyst at Bitget Research. Lee also suggests that ETH prices tend to bounce back strongly after these cycles, and if this coincides with interest rate cuts, the marketâs growth potential skyrockets! đđ„
Gas fees, which are the costs users pay to transact on the Ethereum network, have recently fallen to as low as 0.6 gwei, with low-priority transactions costing just 1 gwei or less. This drop represents more than 95% from the peak of 83.1 gwei in March, when network activity was on the rise. đ
Lee attributes this drop in fees to factors such as demand migration to faster and cheaper alternatives like Solana and layer 2 solutions, as well as the implementation of the Dencun upgrade, which improves network efficiency and reduces transaction costs. đâš
Despite the current decline in fees and increase in ETH supply, Lee's analysis suggests that historical trends point to a potential recovery in ETH prices in the medium term, especially if combined with a rate cut cycle. đđ„
