Ethereum Gas Fees Drop to New Lows

Vinod Dsouza
ethereum eth
Source: Pixabay

Ethereum is among the most loved cryptos in the market but equally hated for its high yet ridiculous gas fees. A simple search for ‘Ethereum Gas Fees’ on your Twitter search bar will open the doors to understanding how much investors are infuriated about the gas fees. However, on-chain and metrics website Santiment released a report stating Ethereum’s gas fees are now at their lowest. Traders on the Ethereum platform are paying not more than $2.54 per transaction currently.

This is the lowest that Ethereum gas fees have declined since July 2021. Nonetheless, investors are not complaining but are thrilled with the gas fees drop.

“Ethereum’s average fees are at an extreme low, costing traders just $2.54 per transaction currently. This is the lowest ETH cost level since July. Historically (but by no means automatically), ETH prices rise after average transactions dip below $5,” tweeted Santiment.

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Ethereum To See A Price Rise?

Santiment reported that Ethereum’s price has seen a rising majority of the time after its gas fees dipped below $5. However, it is advised to be cautious as the market is currently on the back foot. A major spike might not be on the cards this time due to weak global economic cues.

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Several financial analysts have predicted that Bitcoin is yet to bottom out hinting at a further slump. Even Bitcoin tycoon Mike Novogratz predicted early this year that the crypto market is headed for a bad year. He claimed that 2022 will be a hard year for investors and test everyone’s patience. “This will be a year where people realize being an investor is a difficult job,” he had tweeted.

In conclusion, if Bitcoin dips, the rest of the market, including Ethereum dips. It is advised to wait and watch for Ethereum’s next moves and then decide to go all-in or wait for another buying opportunity. Buying the dips blindly during financial turmoil is not advised as the marker has a high chance of facing further corrections.

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At press time, Ethereum is trading at $1,954 and is down 1% in the 24-hours day trade.