On February 19, Santiment published an article on X stating that the average fee for Ethereum transfers is currently only $0.41, compared to a high of $15.21 in the past two years. When Ethereum transaction fees are low, it usually means that the network is not too crowded. When users do not have to pay high fees when transferring ETH or tokens, this is usually a good sign for medium- and long-term price prospects. Traders believe that these low fee levels usually appear when prices are seen as “low” or “bearish.” These reduced costs make it easier for new buyers to enter the market.
On the other hand, when fees are high, it usually means that there is a lot of activity on the network. This usually happens when ETH prices rise rapidly as more and more people rush to trade or use Ethereum-based applications. Just as extremely high fees sometimes discourage traders or lead to short-term adjustments, extremely low fees (like we are seeing now) usually incentivize users to return and increase the utility of the network to a prosperous level.
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