As the largest part of the cryptocurrency market returns to trading sideways, Ethereum (ETH) is no exception, but price rebound could be in the cards for the second-largest digital asset by market capitalization, taking into account historical patterns of transaction fees on its network.
Indeed, according to the data observed by cryptocurrency sector analytics platform Santiment, “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,” the company said in an X post on October 4.
As the analysts further explained, this is “not a perfect signal by any means,” but “lower ETH costs generally lead to a rise in utility and price rebound,” illustrating this on the chart, which shows that “the last time Ethereum fees were below $1.15, a price bottom occurred,” after which the crypto asset did, indeed, recover.
Ethereum price analysis
Meanwhile, Ethereum was at press time changing hands at the price of $1,640.50, recording a decline of 0.35% in the last 24 hours but still holding onto the 1.3% gain across the previous seven days and the 0.58% increase in the past month, as the charts suggest.
On the other hand, the sentiment from the 1-week technical Analysis (TA) gauges over at the finance and crypto analytics website TradingView is strongly bearish, its summary suggesting a ‘strong sell’ at 16, based on moving averages (MA) pointing at a ‘strong sell’ at 13, and oscillators in the ‘sell’ zone at 3.
It is also worth noting that the artificial intelligence (AI) price prediction algorithms deployed by the crypto monitoring platform CoinCodex have set the price of Ethereum at $2,623.13 by the end of 2023, an even higher target than previously reported by Finbold on October 4.