Ethereum encountered a notable setback in the previous week as its price tumbled to a level not seen in seven months. Intriguingly, this decline happened in conjunction with the blockchain network’s total gas fees dropping to their lowest point in three years.
During this past week, increased volatility gripped the wider cryptocurrency market due to the ongoing conflict between Israel and Palestine over the Gaza Strip.
The price of ETH falls to its lowest point in seven months.
Over this timeframe, ETH’s worth experienced a 6% drop, settling at approximately $1,520, partly due to the Ethereum Foundation and prominent whale addresses divesting from the asset.
On October 9, the Foundation exchanged roughly 1,700 ETH, equivalent to $2.7 million, for the USDC stablecoin.
Ali Martinez, the Global Head of News at BeInCrypto, unveiled that ETH whales have disposed of over 5 million ETH, which is approximately $8.5 billion, since February.
At the same time, market analysts suggest that the declining price movement is a sign of waning investor interest in Ethereum.
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Google searches for this digital asset have dropped to their lowest level since 2020, indicating a decreased public curiosity.
Additionally, despite the introduction of several futures exchange-traded funds, investor enthusiasm for Ethereum-related investment products has remained relatively subdued.
Nevertheless, some experts maintain optimistic projections, foreseeing a potential fivefold increase in Ethereum’s value by 2026.
Gas fees on the Ethereum network plummet.
Furthermore, in an unrelated development, Ethereum’s gas fees have reached their lowest point in three years, as reported by IntotheBlock.
This information aligns with an earlier BeInCrypto article which mentioned that Ethereum’s network fees had decreased to a yearly minimum. The report attributed this decline to reduced on-chain activity within the network.
IntoTheBlock echoes this perspective, highlighting that “this reduction is primarily due to the transition to layer 2 solutions and the declining utilization of applications on the Mainnet.” Additionally, it noted:
Traditionally, Ethereum’s gas fees have maintained elevated levels owing to substantial on-chain activity. Nevertheless, these fees have recently reached their lowest point since April 2020, indicating a significant 90% reduction from their peak in May.
Simultaneously, these simultaneous developments give rise to uncertainties regarding Ethereum’s future direction, as its market performance and transaction expenses undergo noteworthy alterations.