Ethereum gas fees are finally dropping after months, ETH/USD struggles to stay above $400

  • As congestion on Ethereum clears, the gas fees appear to be dropping as well. 
  • The reason for this sudden decrease in fees is unclear.
  • In the past two months, the network had recorded high gas fees.

Ethereum gas fees appear to be dropping gradually as congestion on the network is finally clearing. A couple of days back, the average gas fee was between 30 and 40 Gwei. The minimum amount to get a transaction confirmed in less than 30 minutes was 6 Gwei, as per EthGasStation data.

For the past two months, the network had recorded high gas fees, sometimes touching more than 140 Gwei. The average cost of sending an ETH transaction has come down from about $1 to less than $0.25. The improvement is even more significant for DeFi users, where some interactions would regularly consume up to fees of $15.

According to Etherscan data, the network started witnessing a gradual decrease in transaction count several days ago. Total gas usage and the number of token transfers have also dropped slightly. At the moment, the reason for this lowering of gas fees is unclear. 

ETH/USD daily chart

ETH/USD keeps trending in an upwards channel formation. The price faced bearish correction this Thursday, wherein it dropped from $402.38 to $395. Presently, the price has gone up slightly to $396. The MACD shows decreasing bullish momentum, while the relative strength index (RSI) is hovering inside the overbought zone. As per the daily price chart, healthy support levels lie at $371.30, $326.75 (SMA 20) and $317.30.