Ethereum gas fees have dropped to their lowest level since May 2024, indicating significant inactivity ahead of the Ethereum ETF approval.
Ethereum investors are currently sitting on the edge of their seats eagerly awaiting the approval of spot Ethereum ETFs by the U.S. SEC. However, just before the final decision on ETF approval, the Ethereum gas fee dropped to a two-month low suggesting major inactivity on the Ethereum network.
Ethereum Gas Fee Drop Suggests Major Inactivity
On-chain data provider Cryptoquant has released a new chart highlighting the recent trend in the average Ethereum gas fee (gwei). As per the below chart, the gas fee has dropped to the lowest level since May 2024, indicating a sharp drop in the activity on the Ethereum blockchain network. Historically, the chart shows a strong correlation between the rising gas fees and the increasing ETH price.
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This decline in gas fees raises the question of whether it is calm before the storm, especially with the anticipated approval of the spot Ethereum ETF on the horizon.
On the other hand, the Ethereum staking activity has peaked at new all-time high levels ahead of ETF approval. Ethereum whales have been accumulating the coins in the last few weeks and moving them to staking.
A day before, Tron founder Justin Sun accumulated a massive $5 million worth of ETH. Since February, Sun has been on an ETH accumulation spree and holds $1.1 billion of ETH, expecting a strong surge after the ETF approval.
Ethereum ETF Approval and ETH Price Action
The Ethereum price attempted to break past the $3,200 level on Thursday, however, the bull failed in this attempt pushing ETH back to $3,070. for ETH to reclaim the bull run, it has to surge past $3,200 giving a technical breakout above the diagonal formation as visible in the below chart.
Bitwise CLO Katherine Dowling recently said that the Ethereum ETF is currently close to the finish line. Prospective issuers are eagerly waiting for the SEC to provide updates on the pending launch. It will be interesting to see whether there are more filings pending ahead of the final approval.
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