Ethereum Fees Plunge to a Five-Month Low: Will It Impact ETH Price?

Analytics platform Santiment revealed a massive decline in the Ethereum (ETH) network activity, resulting in the severe dip in the transaction costs.

The Ethereum (ETH) transaction fees have dropped to a five-year low, according to prominent crypto analytics platform Santiment. The transaction costs in the past 24 hours have decreased to $0.168 per transaction.

The decline in transactional activity on the Ethereum network has resulted in the severe drop in the transaction costs. However, despite these low trading activities, the Ethereum price has seen a marginal increase of over 2%.

When many people are using Ethereum, users bid higher fees to get their transactions confirmed faster This drives the average costs up. When fewer people are transacting, like we see now, users don’t need to bid much. As a result, the average fee drops. It’s essentially a supply and demand system.

The lower Ethereum fees might hinder a rebound in the ETH price. However, experts like Merlijn The Trader and Crypto Caesar remain bullish about Ethereum’s future trajectory.

For instance, crypto analyst Merlijn The Trader offered a glimpse into the historical trends of ETH price. If history repeats, now might be the optimal time to accumulate ETH rather than opting for a panic selloff, stated the analyst. Despite the extreme fear in the market, the expert remains hopeful about the crypto’s future trends.

If history repeats, this isn’t the time to panic sell.

It’s the time to load #ETH.

Still, feels like an optimal time to average down. Or start an initial position if you haven’t yet. An interesting critical juncture for the world's second-largest cryptocurrency.

While Crypto Caesar provided a more bullish outlook citing Ethereum’s current critical juncture. The altcoin is testing key support levels.

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