Ethereum Hits Its Cheapest Day in 6 Months, Altseason Inbound?

The Ethereum network has just hit its cheapest day in the past 6 months, and experts believe it’s a signal for altcoins rally. On April 27, the average ETH gas fees fell to $1.12. According to crypto analysts from the Santiment platform, this means that crypto altcoins are going ‘to the moon’. Their rallies and drops can be seen through the transaction fees on the Ethereum blockchain, and this time, it may cause a rally sooner rather than later.

Fees Tend to Break Around Local Market Tops

According to Santiment’s experts, fees regularly peak at local market tops. After that, they fall back to a so-called resting state which coincide with market bottoms. The ETH gas fees were at their peak in February. At that point, there was a major interest in a new and experimental token – ERC-404. After dropping down to their 6-month low a couple of days ago, it could be a signal for future upticks in ETH network activity. This could spell the beginning of an altcoin rally, which is why many investors are excited.

This could happen much sooner than expected. Markets have been retracing their steps back in the past 6 weeks. There has been a lack of demand and not a lot of strain on the network. This could result to an Ethereum and associated altcoins rally.

The price of Ether has been on an upside, with slight rallies over the past week of 4.3%. In the past month, less than 75,000 new ETH were issued, with over 57,000 burned. The net supply of new ETH was 16,979. Compared to the previous 5 months which were hit with steady deflation, that’s a positive thing.

Despite the recent uptick in Ethereum inflation, over 437,000 ETH were burned since the Merge. For the unaware, the Merge occurred on September 15, 2022, when the network switched to a PoS consensus mechanism.

It remains to be seen if there’s an altcoin rally on the horizon. With the Bitcoin halving done, exciting news may be on the way, and investors are rightfully excited about the short-term future of altcoins and the crypto market as well.