Ethereum fee spikes - local bottom indicator?

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Ibis
Mar 1, 2021

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.



ETHSTRATEGIES/ALPHA
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Ibis
Mar 1, 2021

Thanks for reading!

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