39 ETHEREUM GAS FEES AT 6-MONTH LOW: ALTCOIN RALLY AHEAD?Low Fees Alert: According to Santiment, Ethereum gas fees have dropped to a six-month low, costing just $1.12 per transaction as of April 27.Read More CryptoNews: BTC 6H Chart Analysis | Tornado Cash Co-Founder Fights Back Against Charges | Bitcoin’s Recovery PhasePrice Trends: This reduction in Ethereum gas fees accompanies a slight increase in Ether prices over the last weekend, suggesting potential market shifts. As ETH transaction fees drop, it often signals a cooling-off period in the Ethereum network, which can pave the way for renewed investor interest.Market Analysis: Historically, low Ethereum gas fees tend to precede market recoveries. This is because ETH transaction fees usually spike during intense trading activity near price peaks and fall when the market cools—something we are seeing now on the Ethereum network, according to Santiment’s April 29 update.Network Activity: Over the past six weeks, reduced demand has led to lower ETH transaction fees and eased congestion across the Ethereum network. This could be laying the groundwork for a rebound in Ethereum and other altcoins, as traders take advantage of lower Ethereum gas fees.ETH Burning: Despite a recent increase in Ethereum’s supply, the deflationary trend continues as more ETH is being burned post-Merge. This ongoing process is crucial in managing the overall dynamics of the Ethereum network, especially during periods of reduced Ethereum gas fees and ETH transaction fees.Supply Data: Ethereum’s circulating supply reached a monthly high, with 74,458 new ETH issued and 57,516 burned, netting an increase of 16,979 ETH. The change in supply aligns with broader shifts in ETH transaction fees and reflects the current efficiency of the Ethereum network.Record Low Prices: The median Ethereum gas fees dropped to a three-year low of 4.7 Gwei on April 29. This low-cost environment may indicate a transitional phase for the Ethereum network, setting the stage for potential volatility in the weeks ahead.
