Ethereum Sees Promising Signs as Gas Fees Plummet

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Ethereum, the pioneering blockchain network, is displaying significant potential, with a series of favorable indicators driving optimism among investors.

To start with, Ethereum’s transaction costs, measured by gas fees, have nosedived to their lowest levels since November 2022, according to crypto analytics firm Santiment. The average gas fee for the week stands at a wallet-friendly $1.13, a far cry from the staggering peak of over $60 in May 2021. Lower gas fees enhance Ether’s utility, potentially boosting its price.

Santiment report on Ethereum — Source: X

Santiment highlighted that the last time gas fees dipped below $1.15, Ether experienced a price bottom, followed by a subsequent surge in utility.

Ethereum’s supply dynamics also fuel optimism. Santiment reports an all-time high of 115.88 million ETH held outside of exchanges, signifying a substantial shift toward cold storage and decentralized platforms like DeFi and NFT marketplaces.

Simultaneously, the amount of ETH on exchanges has plunged to levels not witnessed since May 2018, currently standing at 10.6 million. This reduction in selling pressure on ETH can be seen as a positive sign for price stability.

Possible Institutional Frenzy for Ethereum

Adding to Ethereum’s bullish outlook is the recent launch of nine ETH futures exchange-traded funds (ETFs) in the United States on October 2nd. These ETFs open doors for institutional investors to gain exposure to Ether without the need to hold physical coins.

According to CryptoPotato, this influx of institutional capital is expected to heighten demand and liquidity for ETH, fueling hopes that it might not only reclaim but also surpass the $2,000 milestone by the end of 2023.

Ethereum remains a dynamic and innovative blockchain network, teeming with opportunities for both users and investors. With gas fees at record lows, surging utility, and mounting institutional interest, ETH appears primed for a robust performance in the near future.

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