Ethereum fee spikes - local bottom indicator?

Anyone that's used (or tried to use) Ethereum in the past 30-60 days is painfully aware of the mounting fee problem tackling the network.


At the time of writing, the average fee to interact with the Ethereum blockchain stands at $12.2, though it regularly climbs to 3-4x that number on occasion.


What is less talked about, however, is that many recent fee spikes only really last about 30-60 minutes, and often seem to coincide with ETH's local price bottoms and short-term bouncebacks:


Average daily ETH fees, past 3 weeks
Average daily ETH fees, past 7 days


While the pattern is far from conclusive, it may suggest that at least some fee hikes may be prompted by panic sell-offs and 'paper hand' capitulation, which - assuming enough 'buy the dip' pressure - ends up marking an interim bottom for the second largest coin.



Thanks for reading!

If you enjoyed this insight please leave a like, join discussion in the comments and share it with your friends!

0

Conversations (0)

No comments yet
Be the first to comment

Suggested insights

We are using cookies to improve your experience!

By clicking “Allow all”, you agree to use of all cookies. Visit our Cookies Policy to learn more.

×