Ethereum News: Fees Hit a Low - Is an ETH Comeback on the Horizon?

Analyst Michael van de Poppe is becoming increasingly bullish on Ethereum. In a recent post on X, he pointed out that Bitcoin's dominance likely reached its peak and that Ethereum has been outperforming Bitcoin for the past two months. With the upcoming Ethereum ETF, he expects Ethereum to rise further. This development could confirm a potential bearish divergence on a weekly basis, which van de Poppe interprets as a sign of a strong upcoming performance for Ethereum.

Another factor drawing attention is the gas fees on Ethereum. Gas fees on Ethereum are transaction fees paid in Gwei to secure computational power for transactions and smart contracts. These fees vary depending on network activity and transaction complexity.

This metric has now hit a low. Let’s look at why this development might be bullish.

Ethereum Fees Hit a Low: Time to Buy?

The analysis shows the trend of the average gas fees (Gwei) of Ethereum (ETH), with the black line representing Ethereum prices and the blue line representing the 7-day average of gas fees.

Gas fees are the transaction costs in the Ethereum network, measured in Gwei. These fees vary with network activity - higher activity leads to higher fees.

The current trend shows that gas fees are at their lowest level since May 2024, indicating quieter network activity. Historically, Ethereum prices often rise in parallel with gas fees, as increased network activity usually indicates increased interest and more transactions. The last low was followed by an Ethereum rally. Fees have now reached the same level.

The upcoming approval of the Ethereum spot ETF could significantly impact market activity. Such regulatory developments have the potential to increase interest in Ethereum, leading to higher prices and gas fees. This quiet phase could therefore indicate an upcoming market movement.

In the past, it has always been a good idea to invest in Ethereum during phases of low fees - a kind of counter-cyclical entry. This analysis suggests a counter-cyclical strategy: Currently low gas fees and quiet network activity could indicate increasing interest before the approval of the Ethereum spot ETF.