Story Highlights.
- Ethereum’s gas fees have dropped by an astounding 90% in the past month.
- Ethereum is still facing competition in the dApps and DeFi activities from Layer-1s.
- ETH has risen above $3,000 in anticipation of a surge over the 100-hour simple moving average (SMA) at $3,100.
Bitcoin and other cryptocurrencies were under severe pressure earlier today due to the news about the rising geopolitical conflict and Israel – Iran conflic. This dip was met by a large amount of buying from investors. Bulls have staged a powerful recovery to $3100 after the Ethereum price dropped to $2877 today.
Ethereum Gas fee Drops to 3-Month-Low
Data from Santiment, an on-chain analytics company, shows a significant decrease in the cost of transactions on Ethereum. Costs for completing a transaction in Ethereum have dropped to just $2.07 – a dramatic drop from $15.21 on the 4th of March during an era of high demand.
According to analysts at Santiment, transaction fees for the Ethereum network are often a reflection of the current sentiments in the cryptocurrency markets. Transaction fees are at their highest during periods of extreme optimism, when people believe that the price of crypto assets is about to increase significantly (“To the Moon”). Transaction fees tend to drop during periods of extreme pessimism, when the general sentiment is that crypto markets are declining (“Crypto Is Dead”). The cyclical nature in cryptocurrency markets is illustrated by the pattern of fluctuating transaction fees.
![](https://coingape.com/wp-content/uploads/2024/04/Ethereum-Gas-Fee.jpeg)
Transaction fees are often at their highest around the time of Ethereum’s price peaks, and they tend to be lowest during periods when prices have dropped. In contrast, Ethereum Layer-1 rivals like Solana saw a massive surge in DeFi activities along with recent meme coin fever. The competition also has led to a decongestion of the Ethereum network, lowering the gas fees.
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The ETH price action ahead
Ethereum attempted to recover but met resistance around the $3,100 level, similar to Bitcoin’s struggle. Although the price initially stabilized above $3,000, bearish sentiment took over, and it pushed down below that support level, briefly dropping below $2,900. A bottom was reached at $2,867 and then a recovery began.
Ethereum has recovered from the losses it suffered after surpassing the Fibonacci level for the recent decline from $3,278 down to $2,867. It continues to trade under $3,100, and below the 100-hourly Simple Moving average (SMA).
Ethereum’s immediate obstacle is near $3,020, then a major resistance zone at $3,070. This coincides with the SMA 100 hourly and the key trend line that has formed on the hourly chart of ETH/USD. Additional resistance will be expected around $3.120. This is aligned to the 50% Fibonacci Retracement Level. If the breach of $3,120 is successful, it could lead to a possible upswing toward the $3,200 level.
Bhushan has a flair for understanding the financial markets and is an avid FinTech fan. He is interested in the emerging Blockchain Technology, and Cryptocurrency Markets because of his interest in Economics and Finance. In his constant learning, he keeps himself inspired by sharing the knowledge he has acquired. He reads fiction thrillers and explores his culinary abilities in free time. Content presented may reflect the opinion of the writer and market conditions.
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