Ethereum’s network fees have plunged to some of their lowest levels, with this week recording an average of $1.13, a price last seen in November 2022.
Crypto analytics firm Santiment revealed in a post on X that while the latest discovery may not be a perfect signal, it could indicate that ether (ETH) is preparing for a price rebound.
Ethereum’s Network Fees Plunge
Santiment disclosed that the last time Ethereum gas fees went below $1.15, ETH experienced a price bottom, which eventually corrected and led to a rise in utility.
Since Ethereum has been cheap to use recently, there could be a repetition of past occurrences as lower ETH costs generally increase the probability of a utility and price rise, according to Santiment.
The crypto market intelligence platform’s disclosures come as the amount of ETH outside exchanges hits an all-time high. Ethereum recorded its largest outflow day since August 21 on Wednesday as approximately 110,000 ETH worth roughly $181 million found their way out of crypto exchanges.
The amount of ETH on exchanges, rounding off to 10.6 million ETH, is at its lowest since May 2018 compared to the 115.88 million sitting outside exchanges.
Market Abuzz With ETH ETFs Launch
The latest developments coincide with the launch of ETH futures exchange-traded funds (ETFs) in the U.S., a move that has set the crypto market abuzz with anticipation. Several investment firms launched nine ETH futures ETFs on October 2, expanding the landscape for institutional investment in one of the world’s largest blockchain networks by total value locked.
While investment firms like ProShares and Bitwise launched three and two funds, VanEck, Valkyrie, Kelly, Hashdex, and Volshares unveiled single ETH investment products.
The multiple ETFs launch raised investors’ hopes about the price of ETH hitting and possibly crossing the $2,000 mark before 2023 runs out. Although ETH leaped by 4% at the time of the launch, it lost the gains within 24 hours and, by the time of writing, was hovering around $1,640, according to data from CoinMarketCap.
Meanwhile, the trading volumes of the nine ETH futures ETFs at launch and present have been lower than expected.