Santiment, a blockchain analytics firm, has reported a significant decrease in Ethereum's network fees, with the average gas fee dipping to $1.13. This is reminiscent of the situation in November 2022, when Ethereum (ETH) hit a low of $1,100. These dynamics may suggest a potential price rebound for ETH, which is currently trading near $1,637 after a weekly increase of 1.26%.
Despite the potential for a rebound, trading volume for ETH has seen a decline of 12.2%, falling to $4.6 billion. However, the market witnessed record ETH outflows from exchanges on Tuesday. Approximately 110,000 ETH was moved off exchanges, marking the largest outflow since August 21, 2023. This has led to non-exchange ETH hitting an all-time high and exchange supply reaching a 5.5-year low.
In addition to these market dynamics, the U.S. has seen multiple launches of ETH futures ETFs from firms such as ProShares and Bitwise. This has fueled speculation that ETH could cross the $2,000 mark before the end of 2023. Despite this speculation and the excitement surrounding these new ETFs, they have underperformed in trading volumes and the price of ETH continues to hover around $1,640.
The firm also noted that approximately $181 million worth of ETH was moved off exchanges on Tuesday - the largest outflow since August 2021. This significant movement off exchanges suggests that investors are holding onto their ETH rather than selling it on exchanges - another factor that could potentially support a price rebound for Ethereum.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.