Crypto analysis firm Santiment believes that Ethereum (ETH) and altcoins associated with top smart contract platforms will put many traders on the sidelines.
Santiment said it is closely monitoring Ethereum's average transaction fees, which have plummeted to their lowest levels since October 18, 2023.
According to the analytics firm, low gas prices are a solid signal that Ethereum is bottoming out regionally.
“Ethereum’s average fee level has fallen to just $1.12 per network transaction, marking the lowest average daily cost since October 18th.
Traders have historically oscillated between sentimental cycles of feeling like cryptocurrencies are “going to the moon” and feeling like they’re “over it,” which can be observed through trading fees. These fees tend to peak (and sometimes diverge) near price highs and return to stasis near price troughs.
The market has largely reversed in the past six weeks, and the lack of demand and strain on the network could cause ETH and related altcoins to turn around sooner than many expect. ”
At the time of writing, Ethereum is trading at $3,218, up more than 13% from its April low of $2,832.
Looking at the altcoins operating in the Ethereum ecosystem, Santiment points out that some coins are already showing signs of strength.
“Liquid staking assets are benefiting from a great mini-run this weekend. Of the 17 major assets we track in this sector, market capitalization has increased despite volatile market conditions. , led by LDO (+5.2%) and RETH (+5.9%).
At the time of writing, Lido DAO (LDO) is trading at $2.15 and Rocket Pool ETH (RETH) is worth $3,547.
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