Ethereum Fees Drop 93%: Santiment Signals Potential Rebound

New data from the market intelligence platform Santiment suggests that Ethereum (ETH) may be poised for a significant price rebound. The analytics firm highlights that a specific metric, which historically precedes a recovery for the top altcoin, is currently flashing bullish signals.

According to Santiment, Ethereum’s operation fees are at a low point, a condition that has historically preceded price rebounds for the second-largest digital asset by market cap. The firm notes that fee levels under $1 are generally a promising sign that the crowd has become disinterested, which could indicate a lower risk for buying at these levels. However, it is important to remember that there is no guaranteed ‘bottom’ or ‘top’ level every time fee costs breach below or above a certain level.

Santiment’s analysis shows that the last time ETH fees were near this price, in October 2023, ETH experienced a significant price surge, rising from approximately $1,600 to over $4,000 by March 2024. However, once ETH’s trading fees peaked at over $15, its price began to dip again. This historical pattern suggests that current low fees could be a precursor to another price rebound.

The analytics firm also observes that retail traders are largely writing off Ethereum, another indicator that a price surge may be imminent. Several traders have given Ethereum a meme status as other top cryptocurrencies, such as XRP and Cardano, have enjoyed major breakouts over the past year. Santiment suggests that the more the retail community leans away from an asset, especially one with thriving development, the higher the likelihood of an eventual surprise rebound with little resistance.

At the time of writing, Ethereum is trading at $1,572, reflecting a 1.2% decrease on the day. At the start of the year, it was valued at $3,348. This significant drop in value, combined with the current low operation fees, could be setting the stage for a potential price rebound, according to Santiment’s analysis.