Ethereum Gas Fee Drops To Its Lowest Since July 2021

The On-Chain data shows that Ethereum is in an accumulation phase as its price suffered a drop in recent weeks.

During the current market downturn, the world’s second-largest cryptocurrency, Ethereum (ETH), has experienced a significant correction. While the price of Ethereum remains around $2,000, on-chain data suggests a possible price increase in the near term.

According to Santiment, an on-chain data provider, the Ethereum gas fee has dropped to a ten-month low of $2.54. It adds:

“Ethereum’s average fees are at an extreme low, costing traders just $2.54 per transaction currently. This is the lowest $ETH cost level since July. Historically (but by no means automatically), $ETH prices rise after average transactions dip below $5.”

On-chain data show that Ethereum has recently experienced significant accumulation. The whale group of addresses holding between 10,000 and 100,000 ETH in their wallets has increased their balance from 28.3 million ETH in March to 29.0 million ETH as of today.

It means the whales have spent nearly $1.4 billion on over 700,000 ETH. Currently, these whale addresses hold nearly one-fourth of the total ETH supply.

The divergence is clear in the above image, with whales accumulating at every price drop. However, along with the whales, Ethereum retail investors have also taken part in equal measure. During this time, the number of Ethereum whale addresses holding 1 to 10 ETH has increased significantly.

Over the last month and a half, the number of ETH whale addresses holding 1 to 10 ETH has increased from 1.14 million to 1.19 million.

According to industry experts, the crypto market may experience a relief rally following the recent price drop. If Ethereum can maintain a daily closing price above $2,000, the ETH price could reach $2,300 shortly.

However, if the relief rally continues to be supported by broader market upside, the ETH price could reach $3,000 or close to it.