Crypto analytics firm Santiment thinks that Ethereum (ETH) and altcoins related to the top smart contract platform will leave many traders on the sidelines.
Santiment says it is keeping a close eye on Ethereum’s average transaction fee, which nosedived to its lowest level since October 18th, 2023.
According to the analytics firm, the slumping gas fee is a solid signal that Ethereum is in the midst of carving a local bottom.
“Ethereum’s average fee level has dipped to just $1.12 per network transaction, the lowest average cost in a day since October 18th.
Traders historically move between sentimental cycles of feeling that crypto is going ‘To the Moon’ or feeling that ‘It Is Dead,’ which can be observed through transaction fees. These fees will tend to peak (and sometimes diverge) around price tops, and go back to its resting state around price bottoms.
With markets mainly retracing over the past six weeks, the lack of demand and strain on the network may help turn ETH and associated altcoins around sooner than many may expect.”
At time of writing, Ethereum is trading for $3,218, up over 13% from its April low of $2,832.
Looking at altcoins operating in the Ethereum ecosystem, Santiment notes that a couple of coins are already showing signs of strength.
“Liquid staking assets have benefited from a nice mini-run this weekend. Of the 17 key assets that we track for this sector, the market caps have increased by a combined +5.0% despite choppy market conditions: LDO (+5.2%) and RETH (+5.9%) lead the way.”
At time of writing, Lido DAO (LDO) is trading for $2.15 while Rocket Pool ETH (RETH) is worth $3,547.
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