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- Ethereum gas prices fell, but fees paid to validators rose.
- ETH price fell, but network growth rose.
The recent decline has affected the market Ethereum [ETH] Noticeably, ETH prices fell below the $3,400 level.
Low ETH gas, high fees
Besides, the price of Ethereum gas decreased. Despite the decline in gas prices, in terms of fees paid to validators, Ethereum has outperformed other networks such as Solana [SOL] And You see [TRX] By a large margin.
High verification fees, despite lower gas prices, could indicate continued strong network usage on Ethereum.
Even with lower fees per transaction, higher transaction volume can generate larger overall fees for auditors.
While validation fees may be high now, they may not be enough to offset the overall decline in Ethereum’s price.
Source: X
At the time of writing, ETH has fallen by 4.14% over the past 24 hours. One of the reasons for the decline in the price of ETH is its correlation with BTC, which has also fallen significantly over the past few days.
According to AMBCrypto’s analysis of IntoTheBlock data, the correlation of ETH to BTC was at a high level of 0.78.
Even with the significant decline in the price of Ethereum (ETH), a large portion of holders appear to be in it for the long term. On average, investors hold ETH for up to 2.3 years.
This long-term view is further supported by the fact that actively traded coins are still being held for an average of two months, indicating reluctance to sell.
The average holding time of currencies in circulation provides valuable insights into investor sentiment.
When coins are held for longer periods, it indicates that investors believe in Ethereum’s long-term potential and feel comfortable holding onto their assets.
Conversely, frequent trading activity may indicate a focus on short-term profits and low confidence in the market’s future.
Source: IntoTheBlock
Data on the chain
ETH network growth has skyrocketed over the past few days.
is reading Ethereum [ETH] Price prediction 2024-2025
Therefore, many new addresses were interacting with ETH at the time of writing, meaning that a large number of addresses were interested in purchasing ETH at the current discounted rates.
Moreover, the trading speed of ETH has also increased, indicating that the pace of ETH trading has increased.
Source: Santiment
