1. Ethereum’s Gas Fees Hit Five-Year Lows
2. Ethereum Price Prediction
3. Ether Price Analysis

Amid this ongoing market downturn, recently Ethereum (ETH) is gaining significant attention from the crypto community. On August 19, 2024, the on-chain security analytic firm Kaiko made a post on X (previously Twitter) stating that Ethereum’s gas fees have made a five-year record low.

Ethereum’s Gas Fees Hit Five-Year Lows

According to Kaiko, this record decline in gas fees means less ETH will be burned, leading to a quicker increase in its supply. However, data indicates that ETH’s total supply has been consistently rising since April 2024, as a result, its price has consistently fallen since then. This fee reduction has implications for ETH, as lower fees mean less ETH is burned, increasing the token’s supply. Despite demand drivers like spot ETH ETFs, the growing supply raises the possibility that ETH could experience massive selling pressure and may fall sharply in the coming days.

Ethereum Price Prediction

According to expert technical analysis, ETH looks bearish as it trading below the 200 Exponential Moving Average (EMA) on a daily time frame. In addition to the 200 EMA, it has already broken out a bearish rising wedge price action pattern on a daily time frame. Simultaneously, ETH is also forming a bearish head-and-shoulder price action pattern which makes the overall outlook bearish. If ETH closes a daily candle below the $2,520 level, there is a high possibility it could fall to the $2,300 level or even lower in the coming days.

Ether Price Analysis

At the press time, ETH is trading near the $2,590 level and has experienced a price drop of over 3% in the last 24 hours. Meanwhile, its trading volume increased by 30% during the same period, indicating higher participation from investors and traders, amid the market decline. Whereas, ETH’s open interest has remained unchanged in the last 24 hours, which means interest from traders is neutral.

Due to the record decline in gas fees and the continuous growth in ETH supply despite high demand, Ethereum may face significant price declines and high selling pressure in the coming days.