Crypto analytics company Santiment believes that Ethereum (ETH) and altcoins associated with the leading smart contract platform will leave many traders on the sidelines. Santiment is closely monitoring Ethereum’s average transaction fee, which has dropped to its lowest level since October 18th, 2023. This decline in gas fees indicates that Ethereum is potentially forming a local bottom. Santiment explains that transaction fees reflect traders’ sentiment, with fees peaking around price tops and returning to normal levels during price bottoms. With the recent market retracement and low demand, Santiment suggests that ETH and associated altcoins could turn around sooner than expected.
As of the time of writing, Ethereum is trading at $3,218, a 13% increase from its April low of $2,832. Santiment also highlights a few altcoins within the Ethereum ecosystem that are showing signs of strength. Liquid staking assets, such as Lido DAO (LDO) and Rocket Pool ETH (RETH), have seen market cap increases despite volatile market conditions.
Please note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in cryptocurrencies or digital assets. The Daily Hodl does not endorse the buying or selling of cryptocurrencies and is not an investment advisor.
