Ethereum fees hover near pennies as daily transactions top 1.6M

💡 DMK Insight

Ethereum’s transaction fees are at rock bottom while activity spikes, and here’s why that matters: With ETH currently at $3,875.48 and daily transactions surpassing 1.6 million, traders should take note of the disconnect between network usage and fees. Low transaction costs can attract more users and increase demand for ETH, potentially pushing prices higher. This scenario is reminiscent of previous periods where low fees coincided with price rallies, suggesting a bullish sentiment could be brewing. However, it’s worth considering that elevated transaction volumes without corresponding fee increases might indicate a saturated market, where traders are less willing to pay a premium for transactions. Keep an eye on the $4,000 psychological level for ETH; a sustained break above could signal further upward momentum. Conversely, if transaction fees begin to rise unexpectedly, it might indicate network congestion, which could dampen bullish sentiment. Watch for any shifts in trading volume or major news that could impact network activity, as these factors will be crucial in determining ETH’s next move.