Ethereum network transaction fees have dropped to a noteworthy low of just $1.12 per transaction, marking the lowest average cost in a day since October 18th.
This decline in fees reflects a broader trend in sentiment within the cryptocurrency market, where traders oscillate between bullish and bearish outlooks.
🤑 #Ethereum's average fee level has dipped to just $1.12 per network transaction, the lowest average cost in a day since October 18th.
Traders historically move between sentimental cycles of feeling that #crypto is going "To the Moon" or feeling that "It Is Dead", which can… pic.twitter.com/8b8rLMLyIf
— Santiment (@santimentfeed) April 28, 2024
Historically, transaction fees on the Ethereum network tend to peak around price tops and return to lower levels during market bottoms. With markets experiencing a retracement over the past six weeks, the reduced demand and network strain could signal a potential turnaround for Ethereum and associated altcoins sooner than anticipated.
Despite the recent dip in transaction fees, the price of ETH has declined by over 4% in the past 24 hours. Lookonchain data reveals that Whale 0x444 recently deposited 11,550 ETH ($37M) to Binance at an average price of ~$3,200, resulting in a modest profit of $247K (+0.67%).
Whale 0x444 deposited 11,550 $ETH ($37M) to #Binance at ~$3,200 in the past 2 hours, making a slight profit of $247K (+0.67%).
However, since Mar 9, the whale has completed 3 $ETH trades and lost $4.71M (ROI: -4.2%; loss rate: 67%).
Interestingly, the whale used the same… pic.twitter.com/aM8SdMzQA0
— Spot On Chain (@spotonchain) April 29, 2024
Ethereum Whale Encounters Notable Dip Levels
However, this whale has encountered losses in previous ETH trades since March 9, with a total loss of approximately $4.71M. Interestingly, the whale shares the same Binance address as Smart ETH trader 0xb82, who has earned $16.3M from successful ETH trades, suggesting a potential connection between them.
Following the recent drop in ETH price, the whale decided to liquidate their holdings, depositing all 11,892 ETH ($38M) to Binance for sale, resulting in a profit of ~$217K. This move comes after experiencing losses in three previous attempts to go long on ETH since March 20, highlighting the challenges and risks associated with cryptocurrency trading.
After the price of $ETH dropped, the whale gave up on long $ETH and deposited all 11,892 $ETH($38M) to #Binance for sale, making ~$217K.
This whale has gone long $ETH 3 times since Mar 20, 2 of them were losses, with a total loss of ~$4.63M.https://t.co/SCUoiUoFvz pic.twitter.com/egDBflIHgd
— Lookonchain (@lookonchain) April 29, 2024
Overall, the recent decline in Ethereum transaction fees coupled with market retracement could signal a shift in sentiment and potentially pave the way for a reversal in the fortunes of Ethereum and other altcoins.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: nexusplexus/123RF // Image Effects by Colorcinch
