Ethereum Records Multi-Month Average Transaction Fee Low
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Reports show that the last time Ethereum fees were at such lows was in mid-September 2021, about four months ago. Also, today’s transaction fees are 71.15% lower than the $52.46 average transaction fee seen on January 10. Nonetheless, despite dropping to significant lows, the average ETH fee is still 552% higher than the Bitcoin network, which currently rests around $2.3 per transfer.
Notably, Ethereum has essentially become a deflationary asset following its London upgrade last August, which saw the implementation of the Ethereum Improvement Proposal (EIP)-1559 update. Reports show that at least $6.6 billion worth of ETH (1,828,701 ETH) has gotten burned since the network upgrade in August.
However, with on-chain ETH network transfer costs falling to significant lows, layer-2 (L2) network fees have dropped likewise. At press time, five out of six (83%) of all L2 platforms listed on l2fees.info are below the $1 mark.
Key Ethereum Levels to Watch — February 14
Despite having its transaction fee cost plummeting to multi-month lows, ETH price appears to be on a downward trajectory, as bulls lose control of the $2,900 support. Interestingly, the price action on my daily chart is in sync with the top of my descending channel, as the second-largest cryptocurrency continues to record new lower lows and lower highs, spelling possible doom for the recently-acquired bullish sentiment.
That said, the cryptocurrency needs to claw its way back above $2,900 in the near term to negate the emerging bearish momentum. The markets appear to be in a quiet tone at press time, as the US markets have yet to open.
Meanwhile, my resistance levels are $2,900, $3,000, and $3,100, and my support levels are $2,800, $2,750, and $2,650.
Total Market Capitalization: $1.87 trillion
Ethereum Market Capitalization: $342.6 billion
Ethereum Dominance: 18.3%
Market Rank: #2
