The average gas fee on Ethereum stands at $1.13, the lowest since November 2022.
Subsequently, some analysts believe Ethereum’s native cryptocurrency, Ether (ETH), might be forming a bottom similar to the one in late 2022 based on on-chain data.
According to an X post by analytics firm Santiment, this week’s average fee level on Ethereum reached $1.13, the lowest since November 2022, when ETH formed a bottom at $1,100.
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Analysts noted this is “not a perfect signal by any means.” However, they admitted that lower fee costs “generally lead to a rise in utility and price rebound.”
💸 #Ethereum's network has been particularly cheap to use, and this week's average fee level of $1.13 is the lowest since November, 2022. Though not a perfect signal by any means, lower $ETH costs generally lead to a rise in utility and price rebound. https://t.co/ymXFwGJh49 pic.twitter.com/PEGpXMmZ3q
— Santiment (@santimentfeed) October 4, 2023
When ETH sunk to 2022 lows, it wasn’t before May 2023 that the coin rallied to above $2,157. However, there are no direct indications that this scenario could be replaced.
In the past week, ETH rose 1.26% increase. The coin is changing hands at $1,637, according to CoinMarketCap data.
Despite the firmness, ETH’s trading volume has dropped in the last 24 hours, plummeting by 12.2% to $4.6 billion.
😮 #Ethereum saw about ~110K $ETH ($181M) move off of exchanges Wednesday, the largest outflow day since August 21st. The amount of non-exchange Ethereum now sits at an #AllTimeHigh 115.88M $ETH, while its exchange supply is at its lowest in ~5.5 years. https://t.co/PUOWGt0KS0 pic.twitter.com/u54pp6LZij
— Santiment (@santimentfeed) October 5, 2023
The drop in trading volume also coincides with massive ETH outflows of centralized exchanges, as per Santiment data.
On Wednesday, Oct. 4, around 110,000 ETH (worth approximately $181 million) have been moved off of exchanges, making it the largest outflow day since Aug. 21, 2023.
With the latest outflow, the non-exchange ETH now sits at an all-time high of 115.8 million ETH (around $190 billion), while its exchange supply is at “its lowest in ~5.5 years.”
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