The post Ether fees hit new lows; Is it a bullish setup for investors? appeared on BitcoinEthereumNews.com.

Ethereum’s transaction fees have dropped to their lowest level in a very long time, depicting a bullish setup for investors. Ether’s average transaction cost has dropped to 0.00005 ETH, which is a massive decline from 0.005 ETH recorded in early 2024. ETH price has struggled to keep up with other major altcoins, declining by 18% on a year-to-date (YTD) basis. A drop in Ether transactions can be seen as EIP-1559’s fee-burning mechanism received approval. However, layer-2 scaling solutions like Arbitrum and Optimism have also eased congestion on the network. Ethereum fees drop 97% According to the analysis shared by Santiment, the average fee of an Ethereum transfer stood at $0.41 on February 18. It was a drastic drop compared to the $15.21 high point seen in the last 2 years. It highlighted that the low Ether transaction fees suggest that the network is not overly crowded. Santiment suggested that this is a good sign for mid-term and long-term price outlooks when users are not paying high prices to move their holdings.  It added that traders believe that these fee levels drop down when prices are seen as ‘low’ or ‘bearish’. Meanwhile, a cut in such costs makes it easier for new investors to enter the market.  On the other side, when transaction costs are high, it signals that a lot of activity is going on in the network, which can clog the chain and result in rising overhead for traders. A jump in transactions usually happens when ETH prices are gaining rapidly as more investors or traders want to jump in on the upward rally. However, a surge in Ethereum-based apps also pumps the gas fees. 💸 The average fee of an Ethereum transfer currently sits at just $0.41, in contrast to the $15.21 high point of the past 2…

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Filed under: News - @ February 19, 2025 1:23 pm