Ethereum is currently going through a rather quiet phase. Network demand has dropped significantly, leading to gas fees nearing zero. Even with the ups and downs of the market, there is still a steady growth of capital in stablecoins, and major holders are steadfast in their investments. Is ETH about to experience a significant surge, or is the market redirecting its attention for momentum? Ethereum’s Average Gas Price is now around 0.067 Gwei. This represents one of the year’s most minimal figures. Network usage is currently slowing down, with demand notably reduced compared to the highs seen in mid-October.
This is a nearly perfect environment for traders. Transactions stay affordable, friction is minimal, and cost-sensitive actions like arbitrage and stablecoin transfers can grow efficiently. Nonetheless, the situation with Ethereum is notably different. Falling fees are affecting Ethereum’s revenue, and if this pattern continues, it could jeopardize the viability of ETH’s current economic model unless there is a rise in on-chain activity. In the last year, Ethereum has experienced an influx of $84.9 billion in new stablecoins. This amount exceeds the total of every other blockchain, which was $48 billion.
The data clearly shows where most of the authentic liquidity is focused. Even with falling gas fees and a slowdown in activity, Ethereum remains the top hub for stablecoin supply. In a significant turn of events, large investors are showing increased optimism. On-chain data showed that whale Machi has boosted his 25x leveraged long position to 5,600 ETH, worth around $20 million, while currently reaping nearly $1 million in floating profit, despite an overall negative portfolio.
In a significant change, the “Anti-CZ Whale” moved from shorting to holding 32,802 ETH, worth $119.6 million, with $15 million in unrealized gains. These actions indicate a robust level of assurance among key participants. At the time of reporting, ETH had made a significant recovery, trading above $3,600. The RSI has recovered from oversold levels, and the MACD suggests a potential bullish crossover may be approaching. This provides a technical basis for the positive sentiment regarding a possible breakout.