On-chain analytics firm IntoTheBlock reports a significant decline in ETH fees as the volatility of the second largest cryptocurrency, Ethereum, reaches never-before-seen lows.
IntoTheBlock noted that Ethereum fees have dropped significantly this week, by 21.2%. Ethereum fees dropped to $34.8 million in the week, representing a two-month low. This drop coincides with a period of low volatility.
Volatility, which measures how much an asset's price swings over time, has reached all-time lows for Ethereum.
According to IntoTheBlock, a general pattern of decreased volatility can be seen throughout ETH's history as the asset gains adoption. Nonetheless, the current levels seem surprising.
However, volatility frequently sees both upward and downward spikes, with periods of low volatility typically lasting little more than one month. According to IntoTheBlock, this pattern suggests that more volatile fluctuations in prices are likely soon.
Ethereum price action
In the last 24 hours, the price of Ethereum, the second largest cryptocurrency, is fairly unchanged. At the time of writing, ETH had fallen 0.44% in the last 24 hours to $1,848.
The Consumer Price Index (CPI) climbed 3.2% in the year to July, somewhat less than economists predicted. The report had little effect on the leading cryptocurrencies, Bitcoin and Ethereum, which remained unchanged at their present value.
Notably, Ethereum has been trading in a range for several days as bulls confront the daily MA 50 around $1,881.
If buyers push the price over the MA 50, ETH might rise to $1,930 and then to the psychologically important threshold of $2,000. To begin the second leg of the advance, the bulls must clear this level.
The edge could shift to the bears if the price falls below the critical short-term support level of $1,793, which coincides with the daily MA 200.