The Ethereum Network’s gas fees are at a six-month low, despite a jump in Ether price over the weekend. The combination of both indicates a potential rally may be coming sooner for ETH than expected.
The average fee for an Ethereum translation fell as low as $1.12 on April 27, according to Santiment on X.“Traders historically move between sentimental cycles of feeling that crypto is going ‘To the Moon’ or feeling that ‘It Is Dead’, which can be observed through transaction fees,” Santiment wrote in the post.
Following an 8-month high for gas fees in February, fees have sunk back down into a resting phase. Once a drop comes, it allows investors to jump in and capitalize on the low prices, which in turn will allow ETH network activity to surge. Santiment adds that the uptick in network activity may spark an overall altcoin rally.
“With markets mainly retracing over the past 6 weeks, the lack of demand and strain on the network may help turn ETH and associated altcoins around sooner than many may expect.”
Santiment via X
Also Read: SEC Has Been Investigating Ethereum (ETH) Since March 2023
On April 27, the native tokens of Ethereum layer-2 networks Optimism, Arbitrum and Polygon accounted for three of the top five best-performing assets in the top 50 cryptocurrencies by market cap, gaining 11.7%, 3.5% and 2.8%, respectively. At press time, Ethereum is trading at $3,169.16, and trading volume is already up 13.51% in 24 hours. With trading activity up as well, Ethereum may begin to surge very soon.