The Ethereum gas fees had reached some of their highest levels in 2021. This is mainly because of significant increase in activity from the non-fungible tokens and decentralized finance (DeFi). Although this was the pattern for much of 2018, it has been a trend that has continued into the new year. As the market brings in the New Year, Ethereum fees have started to drop and activity has stabilized on the network.
Ethereum Fees Drop To Eight-Month Low
Since the beginning of 2018, Ethereum fees have fallen steadily. This is partly due to the bear market that saw momentum fall across the cryptocurrency market. Activity has started to balance on the network with more competitors popping up. This has resulted in lower fees and less strain on the network.
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Ethereum fees were at its peak in May 2021 when they reached as high as $300 per transaction. At this time, the bull market was at its peak. The bull run had ended by this point, and it fell back to $30 per transaction. This number rose again after the bull rally and an increase in activity on the network. However, it was only $200 at the 200 level.
Following this point, the trend continued downwards. However, January’s increase in transaction costs would not last long as there was an immediate decline. The Ethereum transaction fee has dropped to $35.17 two months later.
Charts by ETH
Ethereum appears to be another trend that is accelerating recovery. But, it is still weak at this point and is unlikely to continue for long. The $2,500 level is where the bears seem to have locked it. Ethereum continues its struggle to break out of this digital asset. Ethereum can stay at this level for 50 days without moving above that MA. That could be disastrous to its value.
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
ETH is also expected to show support above this price point. To maintain its current trend of recovery, it must break through $2,600. However, investors are feeling increasingly pressured to sell the digital asset, which is now looking to another difficult day.
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ETH has moved up and broke above $2,580 at the time this is written. Although it reached $2594 at the beginning of Tuesday, it is still not above the $2600 resistance.
Featured image by CoinDesk. Chart is from TradingView.com