Several positive developments have been cited recently around the Ethereum blockchain network, one of which is the recent significant drop in network transaction fees after a period of extremely high costs, which has always been a major challenge for users.
Ethereum transaction cost at new low
Average transaction fees on the Ethereum network have dropped sharply to new lows, providing users with relief as they benefit from cheaper transactions. Santiment, a leading market intelligence and on-chain data platform, reported advancement in a recent article on Platform X (formerly Twitter), reflecting a notable decline in on-chain activity and an increase in adoption of scaling solutions.
It is important to note that as we approach the tenth year of blockchain’s existence, transfer fees have undergone significant changes over time. This result suggests that the Ethereum Network becomes more efficient, which could lead to increased acceptance and usage as high transaction costs become less of an obstacle.
According to Santiment data, the average transaction cost of Ethereum is currently valued at $1.63, which is a reasonable amount that has incentivized traders to make more transfers in the past. Santiment further shared a graphic offering insights into ETH transaction fees at certain levels.
In the 4-tier visual illustration, the platform highlighted that when ETH’s average network fees are below $2, it improves utility, which is common during market dips. Meanwhile, fees typically range between $2 and $6 on stable or choppy markets.
Additionally, Santiment noted that higher than normal fees, between $6 and $10, typically occur when FOMO increases during bull runs. Finally, when Ethereum transaction costs are above $10, utility is removed, which is typically common in market highs.
As the market stabilizes, falling Ethereum gas prices could help keep decentralized applications (dApps) and Decentralized finance (DeFi) protocols progress because it reduces the barriers to participation that many people face over time.
ETH price heading towards $2,400 level soon?
Despite these positive advances on the network, the price of ETH still shows a downward movement. It is currently approaching $2,600, a level last seen over a week ago following a broader market rally. Like the altcoin continues to fight, IC News experts have underlines the possibility of a further price decline to the $2,400 level.
According to IC News, Ethereum price is retesting the triangle trendline as possible support with a 2.7% red long candle. Supported by a trading volume of $19.2 billion, the decline indicates sellers’ determination to prevent further rebounds.
The platform claims a daily ETH The candle falling below the 100-day exponential moving average (EMA) and $2,650 due to bearish momentum could provide bears with the necessary strength to push prices lower. As a result, ETH could see a price drop of around 9% as it seeks support at $2,400.
Featured image from Unsplash, chart from Tradingview.com
