ETH Price Tanks Under $1,900, Gas Fee on Ethereum Drops to Ten-Month Low

UTC by Bhushan Akolkar · 3 min read
ETH Price Tanks Under $1,900, Gas Fee on Ethereum Drops to Ten-Month Low
Photo: Depositphotos

The Ethereum gas fee has dropped this low for the first time since July 2021.

The world’s second-largest cryptocurrency Ethereum (ETH) is going through strong selling pressure and we can observe a serious drop in its gas fee. In the last one hour from press time, ETH has witnessed a 7% drop with its price tanking all the way to $1830 levels.

This is the first major price crash in ETH in over a week’s time. As per data from Glassnode, the number of Ethereum addresses in profit has reached a 16-month low.

Ethereum (ETH) has been on a strong correction throughout this year and has tanked nearly 50% year-to-date. With today’s price crash, ETH has touched a new low for the year 2022. If the ETH price breaks under $1800, it has all the possibility to go to $1,500. With the recent price crash, the Glassnode data also shows that the number of ETH addresses in loss has touched a 2-year high.

Ethereum Gas Fee Touches Ten-Month Low

On-chain data for Ethereum shows that the gas fee has also dropped to a ten-month low. On-chain data provider Santiment reported:

“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.”

The drop in the gas fee means that the network is easing up a bit. Ethereum network has been facing this issue of congestion for a while since it is home to some of the biggest DeFi protocols, NFTs, and much more.

On the other hand, the Ethereum developers’ team is currently working on the much-awaited upgrade The Merge. This upgrade will combine the Ethereum mainnet with the Proof-of-Stake Ethereum Beacon chain and will be a major step towards transitioning towards Ethereum 2.0. As per the latest update, The Merge could happen by August 2022. Speaking at the (virtual) ETH Shanghai Web 3.0 Developer Summit, co-founder Vitalik Buterin said:

“We have been working on switching to proof-of-stake almost since the Ethereum project began. And we’ve been working on proof-of-stake for about sevenyears now, but finally, all of that work is coming together. If everything goes well, then the likely plan is for the The Merge to happen in the summer. I know Justin, a few days ago, suggested that August is a possible date for The Merge to happen. If there are no problems, then The Merge will happen in August”.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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