According to on-chain analytics firm Santiment, Ethereum's average transaction fees have dropped to a modest $2.45, and the price of ETH is almost ready to climb again above $1,900.
ETH was trading at $1,868 at the time of writing, hardly higher than the previous day. According to Santiment, after a brief period during which the average fee for transactions on the Ethereum network rose to $7.40, it has since fallen to $2.45, with the majority of these fees coming from ETH and WETH over the past 24 hours.
🤑 Following a brief stint where #Ethereum's network became rather pricey at $7.40 per transaction, the average fee has dropped back down to $2.45. Over the past 24 hours, $ETH and wrapped $WETH are getting the lion's share of these fees. https://t.co/0br2LcwWWR pic.twitter.com/odoQWGcq0r— Santiment (@santimentfeed) July 10, 2023
The average transaction fee, or gas fee, on the Ethereum network, has cooled significantly after spiking over 57% in the first week of July, owing to VMPX, a newly launched cryptocurrency that operates as an ERC-20 and BRC-20 token.
On July 7, IntoTheBlock reported that Ethereum fees spiked by over 50% in the past week, with a new, suspicious token, VMPX, making up 18% of the gas consumption. Data shared by IntoTheBlock showed that the second largest cryptocurrency saw total fees of $47 million within the said period.
ETH price action
The ETH price encountered headwinds after reaching the $1,976 mark on July 3. The gain was restrained by some concerns, including an increased likelihood of future interest rate increases and a more restrictive regulatory environment for cryptocurrencies.
According to CoinShares, Ethereum received inflows of $2.9 million for the previous week, slightly benefiting from an uptick in investor mood.
The RSI is close to midway, and both moving averages have flattened down, indicating that supply and demand are in balance. Ethereum may retest the resistance area of $1,976 if buyers push the price above $1,905 before moving toward the $2,000 level.
On the other hand, if the price drops below the daily MA 50 at $1,842, the bears will attempt to push it down to the daily MA 200 at $1,718, which might forestall the declines.