ETH Bulls Target $2,000 as Transaction Fees Hover Around their Lowest Level in History

by Gordon James

The Ethereum community has been quite excited recently after the cryptocurrency reached a new all-time high of $1,400 in December. Some are now targeting even higher prices for this year – but is it too soon to expect such a price?
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Ethereum is currently trading at $1,400 after a recent bull run. The cryptocurrency has reached its lowest transaction fees in history and the bulls are targeting a price of $2,000. Read more in detail here: ether.

The blockchain has been recording relatively low transaction costs since mid-May, which has been associated with Ethereum for a long time.

According to BitInfoCharts, the average charge on Ethereum has continuously stayed below $5 per transaction over the previous two weeks, with just three instances during that time where the fee exceeded the number.

Over the weekend, the average ETH transfer cost hit a ten-month low, returning to levels last seen in July 2021.

As interest in the dominant smart contract chain wanes, ETH transaction fees are dropping.

This decrease in transaction prices has been linked to customers migrating to other alternative networks with reduced rates.

The transaction cost dropped to extreme lows last week, according to blockchain analytics and intelligence company Santiment. The business published a research implying that Ethereum’s low costs signaled waning interest in the top blockchain.

“Ethereum fees have been very cheap in recent days. We could even see they were at that low level prior to previous bottoms. Low fees imply a lack of activity; no one wants to do anything.”

Santiment brought up DAI, an Ethereum-based stablecoin, claiming that the coin’s money velocity supports the notion that interest in the leading altcoin has dwindled.

“It seems that as we got to the peak, velocity (a measure of how rapidly money circulates in the crypto economy) always [rose].” Now it’s rather low. Hibernation is what these two graphs reveal when they are combined. It usually occurs in the winter. In the winter, bears slumber.”

What does this signify for the price of Ether?

A period of cheap transaction costs has been followed by a spike in Ether prices from a market standpoint. This pattern has already been seen on multiple occasions. After transaction costs fell below $3 in July of last year, Ether went on a tear, more than tripling its value in less than two months. Since then, the market has evolved, and a comparable rise may not be possible.

Nonetheless, the transaction fee decrease complements a slew of other optimistic reasons, like the forthcoming Merge, which might give Ether prices a boost in the immediate term.

ETH Bulls Target $2,000 as Transaction Fees Hover Around their Lowest Level in History

24-hour trading chart for ETH/USD

Bulls in Ether staged a rally from $1,750 this week, and are now aiming to secure support over $2,000. A good closing above this psychological mark will take the bulls out of the driver’s seat and offer upward momentum, boosting a rebound rally.

Bulls have a tough challenge ahead of them in protecting the ‘psychological’ and market-defining $2,000 level.

However, other experts caution that the climb towards $2,000 might be a welcome relief given Ether’s recent collapse below $1,720. They warn that despite recent gains of over $200, investors should exercise care and avoid panic in the event of a fast reverse.

“Keep the larger picture in mind at all times. Yes, things are looking good right now, but this is just a relief rally for me. On the time horizon, there is no broken market structure, and I am still hoping for one more leg down,” Crypto says. Tony, a fictitious trader, penned the letter.

Ether might chart a path toward $1,500, according to the cryptocurrency trader.

Rekt Capital, a cryptocurrency trader and analyst, also offered his thoughts on Twitter, adding that the current rise in Ether prices was predicted.

“It’s no surprise that $ETH has bounced off significant support.” It’s a question of how far #ETH will go from here. In terms of technicals, #Ethereum might rise to as high as $2269, putting it up against fresh resistance. The general consensus is that whatever this rise becomes, it will be weaker than it was in mid-2021.”

The short-term aim of $2,000 introduces a new dynamic, as traders who entered positions in this area are more inclined to try to break even rather than wait for a better time to exit. As a result, selling pressure may increase, perhaps limiting the run to new highs.

Visit our Investing in Ethereum page to learn more about Ethereum.

The “litecoin price” is a cryptocurrency that has seen significant growth since the start of the year. The price of litecoin has been hovering around $2,000 as transaction fees have reached their lowest level in history.

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