On-chain analytics company Santiment reported that the average transaction fee on the Ethereum network is extremely low, with users currently having to pay $2.54 per transaction to transact on the network.
Historical Signal for ETH Price
Santiment noted that the current transaction fee on the Ethereum network is at its lowest level since July 2021, noting that this could be a historic sign for the price:
In the past, the price of ETH has soared after the average transaction fee on the Ethereum network has fallen below $5.
As Santiment points out, the transaction fee on the Ethereum network has dropped to the lowest level in the last 10 months. While the crypto money market bled due to the fear caused by inflation around the world, gas fees also dropped greatly as the price of ETH fell.
According to Glassnode’s warnings, the number of Ethereum transactions fell to 43 million 924 thousand 994, a one-month low, after less use of the Ethereum network. Thus, with fewer people using ETH to transact on the network and buy NFTs, the price of Ethereum has also dropped along with gas fees.
ETH is trading at $1,973 at the time of writing, remaining below $2,000, the psychological level that played a key role in the July 2021 rally. One of the key hurdles in the upside of the price is the $2,644 level. If this level is passed, the price of Ethereum can rise to $ 3 thousand.
Increase in Ethereum Accumulation
According to CoinShare’s weekly Digital Asset Fund Flows report, Bitcoin (BTC) is the cryptocurrency that experienced the weekly outflow with a drop of $154 million. The funds were withdrawn during a tumultuous trading week when the Bitcoin price fluctuated around $30,000. However, Ethereum saw fewer outflows than in previous weeks, suggesting that Ethereum accumulation may continue.
Last week, only $300,000 worth of ETH was recorded in fund outflows from Ethereum.
In the past, Ethereum has seen massive outflows, which has resulted in year-to-date net funds flow to Ethereum at minus $239 million.