Ethereum

Franklin

2024

April

<div class="finbold">
 <p class="paragraph">Ethereum (ETH) gas fees dropped to $1.12 per transaction on April 27, a level previously visited on October 18. This could hint at a historical buy <a rel="noopener noreferrer nofollow" title="signal" href="https://thebittimes.com/tag/signal.html">signal</a> as cryptocurrency analysts point out gas fees as bottom and top indicators.</p>
 <p class="paragraph">In particular, the leading <em>Santiment</em> analyst <em>Brian Q</em> shared an insight on the platform, studying gas fees’ correlation to price. ETH was trading at $3,300 per token by press time.</p>
 <blockquote class="wp-block-quote">
  <p class="paragraph">“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. These fees will tend to peak (and sometimes diverge) around price tops, and go back to its resting state around price bottoms.”</p> <cite>– Brian Q for the Santiment</cite>
 </blockquote>
 <div class="border border-red-300 rounded-xl p-6 not-prose mb-6">
  <h3 class="text-2xl font-black mt-0 flex gap-x-3 mb-5">
   <svg width="32" height="32" viewbox="0 0 32 32" fill="none" xmlns="//www.w3.org/2000/svg"><path d="M4 10.6665V25.3332C4 28.2678 6.392 29.3332 8 29.3332H28V26.6665H8.016C7.4 26.6505 6.66667 26.4078 6.66667 25.3332C6.66667 24.2585 7.4 24.0158 8.016 23.9998H28V5.33317C28 3.8625 26.804 2.6665 25.3333 2.6665H8C6.392 2.6665 4 3.73184 4 6.6665V10.6665ZM8 5.33317H25.3333V21.3332H6.66667V6.6665C6.66667 5.59184 7.4 5.34917 8 5.33317Z" fill="#EF4444"> 
    </path> <path d="M15.996 18.6668L20.4626 14.2815C20.738 14.0166 20.9571 13.6989 21.1068 13.3473C21.2564 12.9957 21.3336 12.6176 21.3336 12.2355C21.3336 11.8534 21.2564 11.4752 21.1068 11.1236C20.9571 10.7721 20.738 10.4543 20.4626 10.1895C19.9074 9.64148 19.1587 9.33422 18.3786 9.33422C17.5985 9.33422 16.8498 9.64148 16.2946 10.1895L15.996 10.4801L15.6973 10.1881C15.1423 9.64023 14.3938 9.33301 13.614 9.33301C12.8341 9.33301 12.0856 9.64023 11.5306 10.1881C11.2552 10.453 11.0361 10.7707 10.8865 11.1223C10.7368 11.4739 10.6597 11.852 10.6597 12.2341C10.6597 12.6162 10.7368 12.9944 10.8865 13.346C11.0361 13.6975 11.2552 14.0153 11.5306 14.2801L15.996 18.6668Z" fill="#EF4444"> 
    </path>
   </svg> Picks for you</h3>
  <div class="grid md:grid-cols-2 gap-x-10 gap-y-3 md:gap-y-5 divide-y divide-gray-300 md:divide-y-0">
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    'Real damage' incoming: Recession probability' extremely elevated' <span class="self-center text-xs text-slate-500">15 mins ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Opportunity? Brace for XRP breakout ahead of ‘exciting changes’ <span class="self-center text-xs text-slate-500">17 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    3 cryptocurrencies to avoid trading in May's first week <span class="self-center text-xs text-slate-500">18 hours ago</span>
   </div>
   <div class="md:odd:pr-4 md:odd:border-r odd:border-gray-300 pt-3 first:pt-0 md:pt-0">
    Japanese Yen at 34-year low, U.S. Dollar climbs on inflation data <span class="self-center text-xs text-slate-500">18 hours ago</span>
   </div>
  </div>
 </div>
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment">
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;">
  </div>
 </div>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
    <p lang="en" dir="ltr">#Ethereum's average fee level has dipped to just $1.12 per network transaction, the lowest average cost in a day since October 18th. <br><br>Traders historically move between sentimental cycles of feeling that #crypto is going "To the Moon" or feeling that "It Is Dead", which can… pic.twitter.com/8b8rLMLyIf</p>— Santiment (@santimentfeed) April 28, 2024
   </blockquote>
  </div>
 </figure>
 <h2 class="wp-block-heading" id="h-ethereum-gas-fees-as-a-sentiment-indicator">Ethereum gas fees as a sentiment indicator</h2>
 <p class="paragraph">Essentially, gas fees are a direct representation of the transactional demand in a network like Ethereum or Bitcoin (BTC). A higher count of transactions per second elevates the gas fees, while a lower demand has the opposite effect.</p>
 <p class="paragraph">In fact, the chart evidences this indicator with an ETH price bottom near the gas fee’s previous low in October. Meanwhile, a $15.21 Ethereum gas fee peak on March 4 was a solid local top indicator.&nbsp;</p>
 <p class="paragraph">It is noteworthy that high fees can also disincentivize cryptocurrency traders from using the Ethereum network, potentially driving this capital to competing blockchains, which could reflect on price. Conversely, low fees attract users to the ecosystem, increasing its fundamental value and demand for the native token, ETH.</p>
 <p class="paragraph">Therefore, investors could now face a buy <a rel="noopener noreferrer nofollow" title="signal" href="https://thebittimes.com/tag/signal.html">signal</a> for the second-largest crypto by market cap, considering the six<a rel="noopener noreferrer nofollow" title="-month" href="https://thebittimes.com/tag/month.html">-month</a> low for Ethereum gas fees.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="558" src="https://cdn.thebittimes.com/images/2024/04/28/2a08fc4911cbcd3e714efd5ddcd6504c.webp" alt class="wp-image-172270" srcset="https://cdn.thebittimes.com/images/2024/04/28/2a08fc4911cbcd3e714efd5ddcd6504c.webp 1024w, https://cdn.thebittimes.com/images/2024/04/28/2a08fc4911cbcd3e714efd5ddcd6504c.webp 300w, https://cdn.thebittimes.com/images/2024/04/28/2a08fc4911cbcd3e714efd5ddcd6504c.webp 768w, https://cdn.thebittimes.com/images/2024/04/28/2a08fc4911cbcd3e714efd5ddcd6504c.webp 1196w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Ethereum price and average fees (USD). Source: <em>Santiment/BrianQ</em>
  </figcaption>
 </figure>
 <p class="paragraph">Additionally, the DTCC listed Franklin Templeton’s Ethereum spot ETF, sparking a price surge for ETH this weekend.</p>
 <p class="paragraph">Bitcoin recently reached an all-time high above $100 in average network fees, a peak of bullish sentiment with the halving. However, fees are back to lower levels as bearish sentiment started dominating investors’ minds.</p>
 <p class="paragraph">A recent “important notice” by the DTCC could be the cause for this shift, as reported by Finbold on April 27. The financial entity will no longer recognize the collateral value for cryptocurrency-based ETFs, threatening a massive sell-off from institutional investors. This can potentially affect expectations regarding the Ethereum spot ETF.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/buy-signal-for-ethereum-as-gas-fees-drop-to-6-month-low-tbt86811.html">https://thebittimes.com/buy-signal-for-ethereum-as-gas-fees-drop-to-6-month-low-tbt86811.html</a></p>

Buy signal for Ethereum as gas fees drop to 6-month low

Table of Contents

TheBitTimes

Other articles published on Apr 28, 2024

Key Price Predictions for Solana and Avalanche in May

The Reason Behind Savvy Investors’ Move from Stocks to Cryptos in 2024

Solana Co-Founder Released Important Meme Coins Statement

From Zero to Hero: Underrated Cryptos Ready for a 2024 Surge

Slothana’s Countdown to Launch – Could This Be the Next Big Meme Coin on Solana’s Blockchain?

Toncoin’s (TON) Correction Begins; dogwifhat (WIF) Shows Bullish Indicators; InQubeta (QUBE) Show...

Join our free newsletter for daily crypto updates!