Ethereum Network Fees Rise Due to Price and Utility Uptick

Santiment shared in an X post published earlier today that network fees for Ethereum (ETH) have risen after the altcoin was able to break above $2K. According to the post, network fees for Ethereum rose to as high as $5.72 per transaction this past Sunday. Notably, this is the highest network fee that has risen since July 4 this year.

💸 #Ethereum’s fees have unsurprisingly risen as $ETH rose back above $2K last week & network utility surged. Relatively, though, transactions are still cheap compared to $14 May average fee levels we saw. Watch how other ERC-20’s are impacted, as well. https://t.co/yuzXALw53z pic.twitter.com/ndw1PYeVEF

— Santiment (@santimentfeed) November 14, 2023

The latest increase is still minor when looking at how high the fees were earlier this year. Santiment revealed that Ethereum’s fees reached an average of $14 in May. Meanwhile, further on-chain analysis shows that the majority of Ethereum’s fees were distributed to Wrapped Ethereum (wETH).

Ethereum’s rising fees were not able to deter traders over the past 24 hours. At press time, data from the cryptocurrency market tracking website CoinMarketCap indicated that the altcoin leader recorded a 0.53% gain over the past 24 hours. Subsequently, ETH was changing hands at $2,060.58. This also added to ETH’s weekly streak, pushing it to +8.88%.

Trading activity for ETH also experienced an uptick during the last day of trading. CoinMarketCap data indicated that the total volume for ETH rose 39.43%. This boosted the cryptocurrency’s total trading volume to $12,957,381,079.

Daily chart for ETH/USDT (Source: TradingView)

ETH rebounded off of the $2,030 support level over the past 24 hours and may attempt to rise to the next major resistance level at $2,150 in the coming few days. Thereafter, continued buy pressure could force ETH to reach as high as $2,300 in the short term.

This bullish thesis may be invalidated if the altcoin leader’s price drops below the $2,030 support level in the next 24-48 hours. In this more bearish scenario, ETH could fall to as low as the subsequent support level of $1,945.

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