Key Points
The cost of transferring Ethereum (ETH) has dropped dramatically. The current average cost is now only $0.41, a significant decrease from the previous peak of $15.21 over the past two years.
Santiment, an on-chain analytics firm, suggests that lower gas fees often indicate a less congested network. This could be a positive sign for the mid-to-long-term price outlook of Ethereum (ETH).
Low transaction costs can attract new buyers, particularly during periods of price stagnation or negative sentiment. Conversely, high fees are usually a sign of increased demand, often leading to temporary corrections.
Ethereum Network’s Recent Developments
The Ethereum network recently voted to increase its gas limit to over 30 million. The gas limit is the maximum amount of computational resources that can be used by all transactions in a block.
A higher gas limit allows the network to process more transactions per block. This could potentially decrease congestion and further lower fees. According to data from gaslimit.pics, the gas limit has reached 35.9 million in the past 24 hours.
Despite a 2% drop in price, Ethereum (ETH) is currently trading at approximately $2,674. The trading volume has increased by 10%, indicating increased investor interest. Ethereum (ETH) has been fluctuating between $2,565 and $2,800 over the past two weeks. The recent drop to the lower end of this range suggests potential further declines.
Coinglass data shows that over $60 million worth of ETH has been withdrawn from exchanges in the past day. This could suggest that investors are accumulating ETH. Exchange outflows are often seen as positive indicators as they suggest long-term holding and reduce selling pressure.
However, with $121 million in short positions at $2,650 and $90 million in long positions at $2,605, intraday traders are exercising caution. This indicates a higher level of short-term bearish sentiment.
The SEC’s decision on Ethereum ETFs with staking integration is seen as the most significant potential bullish catalyst for ETH. Some analysts believe that the lack of staking yield has limited demand for these ETFs, but approval could boost institutional inflows. According to SoSoValue data, the total cumulative ETH ETF inflows have reached $3.16 billion as of February 18.
DefiLlama data shows that Ethereum’s decentralized exchange activity has surged, with Ethereum-based protocols handling $2.62 billion in 24-hour trading volume, up from $1.1 billion on February 16. Ethereum is closing the gap with Solana, which has been criticized for recent meme coin rug pulls.
