On-chain analytics platform Santiment reports that Ethereum network transaction fees have dropped to their lowest since late July 2021. Ethereum's price declined to lows of $2,857 on Feb. 12 before a slight rebound to $2,927, where it presently trades.
? With #Ethereum dropping back below $3,000, the demand to make $ETH transactions has stayed relatively low. And with this, transaction fees are now officially at their lowest level since July 28, 2021. Low fees typically maximize the chances of a bounce. https://t.co/zTg2CSd3xO pic.twitter.com/qTO2vao940— Santiment (@santimentfeed) February 13, 2022
According to Santiment, Ethereum's median fees have dropped below $3, indicating that demand for Ethereum transactions has remained low. Lower transaction costs and increased scalability are expected to improve Ethereum's investor outlook. As a result, low fees usually increase the possibility of a bounce for the Ethereum price.
Ethereum co-founder Vitalik Buterin recently discussed a "near-future hard fork" that would include "blob-carrying transactions." Although Ethereum Layer 1 may continue to remain expensive, improved scalability and zero-knowledge(zk) rollups can provide users with the lowest fees. Users would eventually rely solely on zk rollups rather than interacting directly with the Ethereum network.
Before sharding, the proposed solution will provide temporary relief from scalability concerns and transaction fees on Layer 2 rollups.
According to experts, the new "blob-carrying transactions" proposal could be adopted in the Shanghai hard fork. The new transaction structure, according to Buterin, would be linked to the beacon block and consensus nodes.
Ethereum's price rose to highs of $3,284 on Feb. 10 before suffering a rejection. ETH subsequently fell below the $3,000 psychological level to mark lows at $2,857 on Feb. 13 before a slight rebound. However, if buying pressure increases, Ethereum's price might aim to tag $3,123 next.
Alternatively, if selling returns, the first line of defense for the Ethereum price is at $2,855. Additional footholds may emerge at $2,772 and then at $2,722.