Ethereum gas fees have dropped considerably, despite on-chain data showing network activity has increased. Meanwhile, a looming breakout from a triangle pattern suggests a rally to $4,000 may be imminent, despite ongoing market volatility. At press time, Ethereum was trading at $2,952, up 0.59% over the past 24 hours, amid surging long liquidations across the broader crypto market.
Ethereum Gas Fees Remain Low as Network Activity Peaks
On-chain data suggests the Ethereum network may have solved the issue of high gas fees that have plagued it for years. According to Etherscan, gas fees have dropped to an average of $0.0027, the lowest level in years.
This drop comes despite network activity increasing, a factor that has always been linked to high fees on the blockchain. Data from YCharts shows that Ethereum daily transactions have soared to 2.39 million, the highest level in more than five years. Additionally, the daily active addresses have doubled in the last two weeks to more than 800,000.
There has also been an influx of new users joining the network. Recently, ZyCrypto reported that Ethereum’s wallet growth has reached a record high, indicating an influx of new users joining the network.
The resilience of Ethereum, with gas fees remaining low even as more users are on the network, can be attributed to network upgrades. The Fusaka upgrade that went live last month is one of the factors attributed to the drop.
This month, Ethereum has also adjusted the blob parameters, reducing data costs for layer two rollups. Because of these two improvements, it has become cheaper for users to use Ethereum even when many users are on the network.
Bullish Triangle Pattern Signals Potential Rally to $4,000
As the Ethereum network shows resilience, analyst Ali Charts has shared a bullish outlook for X, predicting the price could surge to $4,000. The analyst attributed his forecast to a bullish ascending triangle pattern, whose breakout could lead to such gains.
The key resistance level Ethereum needs to break to reach $4,000 is $3,413. If the price can move above this level and push past $3,660, the analyst notes that this breakout rally may be possible.
However, the bullish thesis depends on whether ETH can hold the $3,085 support level for the bullish leg to occur.
Source: https://zycrypto.com/ethereum-gas-fees-plunge-despite-peak-network-activity-bullish-triangle-signals-rally-to-4000/
