Ethereum Price Stuck in Range Amid Lower Fees and Recovering Network Activity
Ethereum's price has recovered from its April low but remains stuck in a range between $2,357 and $2,560. The current price is around $2,490, and traders are waiting for a clear break before the next big move takes shape.
According to Altcoin Sherpa, ETH needs to break out in either direction before the market gets a clearer signal. However, there are some encouraging signs underneath the price action, including a drop in fees and recovering network activity.
The average Ethereum transaction fee has fallen 86.8% from its April level, which is attributed to improvements in Ethereum's capacity, such as Fusaka, higher blob throughput, and greater use of Layer 2 networks. This allows more activity to take place without putting the same pressure on Ethereum's mainnet.
Despite the lower fees, the amount of ETH burned through EIP-1559 has dropped from $1.37 million in April to about $83,000 in September. This means cheaper transactions make the network more accessible but also mean less ETH is being removed from circulation through fee burning.