Ethereum sees bullish momentum on Sunday as gas fees drop to levels not seen in weeks.
Ethereum managed to stage a comeback on Sunday following a dismal weekend which was led by a weakening bitcoin. ETH managed to reach a new all-time high of $2,645 on Binance.
The blockchain also saw its active ethereum address hit a new all-time high of 771,000. Previously held in November 2020 at 739,000.
Ethereum had since declined with bitcoin which had seen a full week of bearish selling in the market. Ethereum managed to stage a comeback on Sunday as network fees had dropped dramatically.
Gas fees plummet
Ethereum gas fees had dropped to weekly lows, with fast transactions costing just 54 gwei. While weekends generally see lower gas fees as traders take time away from trading, this is the lowest prices seen in weeks on the ethereum blockchain.
ETH looking strong as market stabilizes
The low fees appear to have lifted the price of ethereum as it pushed back up on Sunday. Ethereum managed to climb 4.4% on Sunday as it reclaimed $2,300.
Also noticeable was ethereum’s dominance, which had also climbed over 3% on Sunday. Ethereum’s dominance has slowly been gaining as the BTC dominance continues to decline. Previously this has been a bullish sign for altcoin season.
The lower gas fees over the weekend would likely trigger more traders to trade on the blockchain, saving them transaction costs. Ethereum has previously seen surges in gas fees as it hits new highs, however gas fees appear to be dropping.
The ethereum network is currently in the process of upgrading. The upgrades are set to mitigate the high gas fees that have been experienced in recent months. The Ethereum Berlin Upgrade has already been completed. With the London upgrade set to occur in July 2021.
Ethereum continues to look strong, even after the drop experiences last week by bitcoin. Ethereum was one of the few projects who did not see a dramatic price drop as bitcoin fell 15% over the last week.