Buy signal for Ethereum as gas fees drop to a 6-month low
Ethereum’s gas fees have dropped to $1.12 per transaction, reaching a level not seen since October 18. This significant decrease in fees could potentially serve as a buy signal for traders, as it has been observed that gas fees often correlate with price movements. The leading Santiment analyst, Brian Q, has pointed out the cyclic nature of trader sentiment, which is reflected in transaction fees. Fees tend to peak and diverge around price tops, but return to normal levels during price bottoms. This recent drop in gas fees suggests that Ethereum may be at a price bottom and could present a buying opportunity. The current price of ETH is around $3,300 per token.
In addition, the DTCC has listed Franklin Templeton’s Ethereum spot ETF, causing a surge in ETH’s price over the weekend. However, Bitcoin’s average network fees have reached an all-time high recently, reflecting bullish sentiment during the halving. Nevertheless, fees have now decreased to lower levels, indicating a shift towards bearish sentiment among investors.
The recent announcement by the DTCC, stating that cryptocurrency-based ETFs will no longer be recognized for collateral value, could be the reason behind this shift in sentiment. This development threatens a potential sell-off from institutional investors, which might affect expectations regarding the Ethereum spot ETF.
Disclaimer: This information should not be considered as investment advice. Investing in cryptocurrencies carries inherent risks, and capital is always at risk.