At $1,327, Ethereum’s ATH is a little far. But what has contributed to the impediment of the largest altcoin’s uptrend to new highs? In the latest development, Ethereum’s average fee was now found to be at $11.46.
This was revealed by the crypto analytic platform, Santiment which went on to speculate that the rising fees can potentially correlate to a cooling-off period with respect to the usage of the Ethereum network until fees return to normal. Hence, this would mean that a case of rising gas fees could hinder chances of a potential rally.
On a similar note stated,
“A top is far from a guarantee, but something to be cautious of. “
Just a week ago, it was found that Ethereum’s fees were a little below $8 shortly after setting a record high of above $19.
Besides, Ethereum miners broke a new record after they had reportedly amassed $800 million in revenue in the month of January.
Over $300 million of the total mining revenue the month originated from transaction fees on the Ethereum network which soared to ATH as the price of the crypto-asset surged.
While rising fees demands caution, all hope is not lost.
Ethereum Whales Gears For An Uptrend?
Despite the retracement in its price, ETH whales are fairly optimistic. The current price level depicted clear signs of volatility. But the altcoin failed to secure $1,500 having a hit wall just below the point. ETH continued to remain rangebound and the declining active supply of Ethereum was positive news.
According to Glassnode’s latest chart, ETH’s active supply has been on a steady decline since last October which contributed to the crypto-asset’s rise from a level below $500 to establishing a fresh ATH.
Moreover, if the IntoTheBlock’s IOMP metric is to be considered, it was found that a good 95% ETH traders were in profit. Based on these metrics, it is unlikely that ETH may undergo a strong rejection in the near-term despite the ongoing dull price action.