Published on oktober 1, 2024, 12:35 am
Image source: Fox News
```json [ { "TLDR": "Increase in Ethereum network activity led to a 498% surge in gas fees. Ether's price reaction uncertain. Factors include rising on-chain activity, DEX volumes, and NFT engagement. Technical analysis shows potential bullish momentum for ETH but key moving averages act as resistance. Ethereum investment products saw positive growth after five weeks of decline." } ] ```
An increase in Ethereum network activity has coincided with a significant 498% surge in ETH gas fees. The big question now is: How will Ether’s price react to this development?
According to Coinbase’s recent weekly report released on Sept. 27, Ethereum transaction fees have skyrocketed over the past two weeks due to a noteworthy uptick in on-chain activity. The report reveals that between Sept. 16 and Sept. 26, the average Ethereum gas fees soared by a staggering 498% compared to the monthly average, with the median transaction cost jumping from $0.09 at the start of the month to $1.69.
Coinbase analysts David Duong and David Han attribute this fee spike to the increased on-chain activity on Ethereum, pointing out that there isn’t a single driver behind this surge but rather several contributing factors, including a slight uptick in volumes on decentralized exchanges (DEX) within the Ethereum ecosystem and a notable 17% rise in total Ether transfer volumes week-over-week.
The rise in on-chain activity is mirrored by increases in gas fees, with spikes reaching up to 40 gwei multiple times within the past week according to Gashawk, a blockchain efficiency firm. This heightened activity has also led to a surge in daily total Ether fees burnt, climbing over an astonishing 900% to reach 2,097 ETH between Sept. 14 and Sept. 24 as reported by CryptoQuant.
Furthermore, data from DappRadar indicates that DApp volumes nearly doubled in just one day by an impressive 97%, reaching $3.6 billion while NFT volumes also rose by 17%, highlighting the escalating engagement on the Ethereum blockchain.
From a technical viewpoint, Ether’s price has broken above its relative strength index (RSI) downtrend line starting from March’s multi-year peak of $4,093, hinting at a potential shift towards bullish momentum in ETH’s short-term trajectory despite being capped below its key moving averages of $2,770 (100-day EMA) and $2,864 (200-day EMA). For a sustained recovery confirmation, bulls must successfully convert these EMAs into support levels.
On another front, Ethereum investment products ended their five-week downward trend as they saw inflows totaling $87 million recently – marking measurable growth since early August according to CoinShares’ report. This positive movement mainly stemmed from spot Ethereum ETFs attracting inflows of $58.7 million on Sept. 27 alongside BlackRock’s ETHA experiencing substantial inflows of $11.5 million leading its net inflows across all assets under management to surpass $1 billion.
Important Disclaimer: It’s crucial for readers to understand that this article does not provide investment advice or recommendations; all investment and trading actions involve inherent risks so it remains vital for individuals to conduct their own thorough research before finalizing any decisions concerning cryptocurrencies like Ether (ETH).
Original article posted by Fox News
