Ethereum’s network activity is hitting unprecedented levels, despite the fact that its price has been declining for the fourth straight day. This has left investors questioning: Should you continue to HODL ETH during the dip? According to data, the Ethereum Ecosystem Daily Activity Index has achieved a remarkable milestone, hitting an all-time high of 1.985 million. The data monitors the 30-day Simple Moving Average [SMA-30] of daily active addresses for 76 ERC-20 tokens. This sustained uptrend highlights increasing on-chain engagement, rather than short-term speculation, emphasizing the network’s fundamental strength.
In a notable development, Ethereum transaction fees have plummeted to historic lows of 0.16 gwei, translating to approximately $0.01 per transaction. The network continues to handle more than 1.6 million transactions each day. According to data from Etherscan, gas prices have remained close to record lows for the majority of October, even with brief spikes early in the month reaching around 18 gwei. This stability highlights significant advancements in Ethereum’s scalability and cost-efficiency, driven by enhancements in rollup compression, Layer-2 efficiency, and validator participation.
In the face of these bullish fundamentals, ETH has experienced a decline of nearly 3% over the last 24 hours, currently trading at approximately $3,796 as of the latest update. The decline continues its four-day losing streak, with broader market sentiment staying cautious following the Federal Reserve’s rate cut earlier this week. Analysis reveals that price and fundamentals often diverge in their movements. Ethereum is experiencing a notable increase in network activity alongside record-low transaction costs, indicating a robust foundation that may take some time to manifest in price movements. When on-chain metrics increase and fees decrease, it typically indicates that the market is gearing up for the next growth phase.
The strength of Ethereum is rooted in its ecosystem, rather than solely in its token price. With rising participation and sustained low costs, the network is successfully drawing in new users, developers, and liquidity. For long-term holders, these trends present a compelling case to maintain their positions instead of succumbing to panic selling. Ethereum’s fundamentals remain robust, and for those with a long-term perspective.