Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, could soon breach the $1,900 mark as transaction fees tumble to a remarkable $2.45 on average, as revealed by the on-chain analytics firm Santiment. ETH traded marginally higher than the previous day at $1,868.
🤑 Following a brief stint where #Ethereum's network became rather pricey at $7.40 per transaction, the average fee has dropped back down to $2.45. Over the past 24 hours, $ETH and wrapped $WETH are getting the lion's share of these fees. https://t.co/0br2LcwWWR pic.twitter.com/odoQWGcq0r
— Santiment (@santimentfeed) July 10, 2023
Following a brief interval when the average transaction fee on the Ethereum network climbed to $7.40, it has now plummeted to $2.45. These fees were sourced from ETH and WETH transactions within 24 hours. The substantial reduction in Ethereum’s average transaction fee, commonly called the gas fee, came after a sudden 57% spike in the first week of July. This was largely attributed to VMPX, a novel cryptocurrency operating as an ERC-20 and BRC-20 token.
On July 7, analytics provider IntoTheBlock reported that Ethereum fees had soared by more than 50% in the past week, with VMPX contributing 18% of the gas consumption. The report showed that the Ethereum network generated total fees of $47 million within the same period. ETH price faced hurdles after peaking at $1,976 on July 3, hampered by concerns including a potential uptick in future interest rates and a tightening regulatory landscape for digital currencies.
Investment firm CoinShares reported that Ethereum received inflows of $2.9 million last week, indicating a slight uplift in investor sentiment. The Relative Strength Index (RSI) is hovering near the midpoint, while both moving averages have levelled out, signifying a balance between supply and demand.
If buyers push the ETH price above $1,905, Ethereum might once again challenge the resistance at $1,976 before aiming for the $2,000 milestone. Conversely, if the price falls beneath the daily Moving Average (MA) 50 at $1,842, bearish traders could push it further towards the daily MA 200 at $1,718, serving as a potential buffer against further declines.
