One on-chain metric looks bullish for Ethereum’s (ETH) mid- and long-term outlook, according to the crypto analytics firm Santiment.
The firm notes on the social media platform X that the average fee of an Ethereum transfer is currently priced at $0.41, a sharp drop from $15.21, the high point in the past two years.
Santiment says that low transaction fees usually mean Ethereum’s network isn’t too crowded,
“When users are not paying high prices to move their ETH or tokens, it is typically a good sign for mid-term and long-term price outlooks. These low fee levels often happen when prices are perceived as ‘low’ or ‘bearish’ according to traders. These reduced costs make it easier for new buyers to enter the market.
On the other hand, when fees are high, it usually means there is a lot of activity on the network. This often happens when ETH prices are rising quickly, as more people are rushing to trade or use Ethereum-based apps.”
The analytics firm adds that extremely low fees can “incentivize” users back into the Ethereum market.
ETH is trading at $2,712 at time of writing. The second-ranked crypto asset by market cap is up nearly 3% in the past 24 hours.
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