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ETH Gas Fee Flashes Inactivity Concerns Before Ethereum ETF Approval
Ethereum investors are currently sitting on the edge of their seats eagerly awaiting the approval of spot Ethereum ETFs by the U.S. SEC. However, just before the final decision on ETF approval, the Ethereum gas fee dropped to a two-month low suggesting major inactivity on the Ethereum network.
Ethereum Gas Fee Drop Suggests Major Inactivity
On-chain data provider Cryptoquant has released a new chart highlighting the recent trend in the average Ethereum gas fee (gwei). As per the below chart, the gas fee has dropped to the lowest level since May 2024, indicating a sharp drop in the activity on the Ethereum blockchain network. Historically, the chart shows a strong correlation between the rising gas fees and the increasing ETH price.
This decline in gas fees raises the question of whether it is calm before the storm, especially with the anticipated approval of the spot Ethereum ETF on the horizon.
On the other hand, the Ethereum staking activity has peaked at new all-time high levels ahead of ETF approval. Ethereum whales have been accumulating the coins in the last few weeks and moving them to staking.
A day before, Tron founder Justin Sun accumulated a massive $5 million worth of ETH. Since February, Sun has been on an ETH accumulation spree and holds $1.1 billion of ETH, expecting a strong surge after the ETF approval.
Also Read: Ethereum Investors Are Ready To Sell ETH As It Hits $3.2K
Ethereum ETF Approval and ETH Price Action
The Ethereum price attempted to break past the $3,200 level on Thursday, however, the bull failed in this attempt pushing ETH back to $3,070. for ETH to reclaim the bull run, it has to surge past $3,200 giving a technical breakout above the diagonal formation as visible in the below chart.
$ETH – I’m still positioned to expect upside and still think we go up but we haven’t reclaimed the diagonal and OBV hasn’t broken out yet. That OBV V shape looks really good and I’m betting on UP. But have to keep bias in check if we reject both of these. pic.twitter.com/xAy5wWiFCf
— IncomeSharks (@IncomeSharks) July 11, 2024
Bitwise CLO Katherine Dowling recently said that the Ethereum ETF is currently close to the finish line. Prospective issuers are eagerly waiting for the SEC to provide updates on the pending launch. It will be interesting to see whether there are more filings pending ahead of the final approval.
Also Read: Bitwise Executive Says Ethereum ETF Is Close to the Finish Line
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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