Since a long time, Ethereum gas prices are falling. The price had reached its highest point in 2021, when the bull markets were in full swing. It continued its high-spread spike and continued to rise at various points to reach high levels. Average ETH gas fees reached $69. At their highest point, they were almost as high as $69 The average ETH gas fee was as high at $69.95 when it was highest. However, due to the current downtrend, and market losses momentum, gas fees are now near their six-month lows.
Ethereum Fees are Down
Average Ethereum gas fee fell to $5.98 early March after a steady downtrend in the previous three months. These were the lowest gas prices in seven months. This would be quickly ended by a sudden spike in gas costs in April, which sent gas fees up to $43. This might prove to be temporary, as the sharp decline that followed saw ETH gas costs plummeting to their lowest level in six months.
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The average Ethereum gas fee had dropped to $8.78 as of Monday. This represented a drop of 76$% from the April peak to place it at levels that were recorded in March. This drop in ETH fee fees led to a decline in Layer 2 fees, which are significantly lower than the cost of transacting on the main network.
On Sunday, Metis Network recorded that the lowest fee rate was $0.03 per transaction. Transaction fees for Loopring, Zksync and others have fallen to $0.05.
The average Bitcoin transaction fee was $1.04 as bitcoin fees have fallen.
Charts by ETH
This downtrend is evident in both the cost of digital assets and transaction fees. In the morning hours Monday, the Ethereum price crashed to below $3,000 and although small gains were made, multiple dips saw it reach the $2800 price level before Monday’s markets opened.
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Indicators had become inherently bearish on the digital asset due to the sell-offs that rocked the market. This skew completely in the favor of sellers. The $2,900 level represents the next significant support level, but bears will continue to try to bring it lower.
ETH is now below its 50-day moving mean. It is now that the forecasts for cryptocurrency in the near-term are negative. The long-term outlook also looks bad. At the time this article was written, the digital asset trades at $2909.
Featured Image from Shrimpy Academy. Chart from TradingView.com