Shifts in Ethereum's network metrics, as reported by Santiment on Thursday, suggest a possible price rebound for Ether (ETH). The average gas fee for Ethereum has decreased to $1.13, a level reminiscent of trends seen in November 2022 that were followed by a significant price increase.
The reduction in gas fees is not a guaranteed indicator of an imminent price surge, but it is an important factor to consider. Lower fees can stimulate utility and trigger price surges, as observed in previous trends. Over the past week, ETH has seen a modest increase of 1.26%, trading at $1,637. This occurred alongside a 12.2% decrease in trading volume to $4.6 billion.
Simultaneously, there has been a significant outflow of ETH from centralized exchanges. The amount of ETH held outside exchanges has reached an all-time high, while the supply within exchanges has dropped to its lowest level in approximately 5.5 years. This shift coincides with the U.S.'s launch of ETH futures ETFs, which has sparked widespread interest across the cryptocurrency market.
These developments come at a time when Ethereum's network fees are averaging at $1.13, suggesting a potential rebound for ETH prices. As always, market participants are advised to consider these factors alongside broader market trends and their individual investment strategies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.