ETH price hits ATH, but trading volume and gas fees drop, what’s going on?

For the first time, crypto cumulative market cap passed the $ 3 trillion mark, a development welcomed by the entire community. Based on the ETH returns, the market capitalization of the largest altcoin has also broken out and has reached a new ATH. The price is very bullish right now and is actually moving into the discovery zone.

ETH 4-Hour Price Chart | Source: Tradingview

September 2021, the development of ETH has increased and gives both long-term and short-term HODLers a weekly ROI of 9.93% and a monthly ROI of over 33%. At press time, ETH is trading at $ 4,778, up 1.4% over the daily time frame and 10.9% over the weekly time frame.

Interestingly, ETH’s gas fees and trading volume have decreased as the price is now hovering near ATH. Why did this strange situation arise and what can the top altcoins expect in front of us?

A strange case

Ethereum gas fees have been falling for the past 5 days as the price continues to rise. The average transaction fee was $ 37.19 on Nov 7, down more than 33.5% from $ 55 a week ago. In addition, the number of transactions also decreases while the price increases.

Number of ETH transactions | The source: Glass knot

The number of ETH transactions per day reflects the number of daily transactions completed on the network. A decrease in this indicator suggests that participants are less optimistic. In addition, the network’s hashrate continues to rise to new highs.

Hashrate determines the computing power of the network and gradually Etherscan, the highest average hashrate value of 830.08.8955 GH / s was on 07/11. measured.

In addition, the FOMO retail sector also cooled significantly. In fact, the trading volume has been falling steadily over the past week. But while the demand for ETH is falling, the network still has a long way to go.

In particular, ETH’s NUPL (Unrealized Net Profit / Loss) has yet to get into a state of euphoria. Indeed, the recent market rally has yet to enter the euphoric phase, so the asset is likely to see further uptrend.

Although the network is profitable, it has not yet reached the selling point. This also means that HODLer will not be taking any profits anytime soon.

The source: Glass knot

According to some analysts like Benjamin Cowen, the next logical price target for ETH would be a valuation of 0.1 BTC, or around USD 6,571.

“I think that 2022 remains relatively optimistic for ETH, especially when it comes to the merge and what is to come.”

In view of the fact that analysts view ETH from a bullish perspective and a continuously bullish price movement, from now on ETH will only go up. However, a short-term drop in prices could be a good entry into the market.

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Minh Anh

According to AMBCrypto

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