Ethereum Fees Plummet: Bullish Sign for Mid- and Long-Term Price Outlook

Ethereum (ETH) price outlook appears bullish over the mid- and long-term, according to crypto analytics firm Santiment. The firm highlights a key on-chain metric, the average fee of an Ethereum transfer, which has dropped significantly from its peak of $15.21 in the past two years to the current level of $0.41.

Santiment notes that low transaction fees indicate a less crowded network, making it easier for new buyers to enter the market. This typically occurs when prices are perceived as low or bearish, and reduced costs can incentivize users to return to the Ethereum market. In contrast, high fees usually accompany rapid price increases, as more people engage in trading or using Ethereum-based applications.

At the time of writing, ETH is trading at $2,712, having gained nearly 3% in the past 24 hours. The second-ranked crypto asset by market capitalization continues to show signs of recovery, with low transaction fees potentially signaling a positive outlook for the mid- and long-term price trajectory.