Social media platform Twitter is buzzing with a lot of complaints from traders about Ethereum gas fees (GWEI). Many claim they are exorbitant and are either not using the platform or opting out of it. One such user was Skyler, who said she was done with the chain as a result of the fees.
Screw Ethereum gas fee, I am done with It.
– Skyler (@itsdonydirl) January 12 2022
As calls for a seamless and minimal gas fee rage, Crypto Tony alleges GWEI is a scam. He said that there is one scam that every day we all get exposed to and don’t bat an eye lid.
There is one scam that every day we all get exposed to and don’t bat an eye lid
#Ethereum gas fees
Crypto Tony (@cryptotony_) January 13 2022
With more users expressing their detest of the high gas fee, we note the decrease in the fear and greed index. Current Ether’s market sentiment analysis reading is at 29 as opposed to 31, 24 hours ago.
It is no news that traders are avoiding almost all forms of transactions on the Ethereum network. What effect could it have on prices?
Further Downtrend
The spike in Ethereum gas fees has not had much positive impact on the asset’s price. The most recent incident was in September 7 2021 when the average GWEI surged to a high of 213. The sudden hike in fees, along with other constraints, resulted in the coin losing more than 12% of its value at the time.
Source: Etherscan
Another such occurrence was in February 23 2021 when GWEI surged to a high of 373. The cryptocurrency lost more than 11% of its worth at that time. While some major hikes in gas fees were met by price retracements, few were shrugged off.
One such was in September 17 2020 when the average gas price hit 538. The market during that period was stable and the largest alt enjoyed a more than 6% increase at the time. As per the previously highlighted incident, there were days prices went as normal regardless of the increase in Ethereum gas price. Will now be one of those times?
We observed that the second largest cryptocurrency, like the rest of the crypto market, is plagued by bearish dominance. The increase in gas fees will place extra burden on traders and many will share the same sentiments as those expressed at the start of the article.
With the laws of demand and supply still in play, as users boycott the asset, it may result in ether ranging or experiencing further downtrends. How low? We note that the asset has held the $2,900 support for more than three months. A dip to that level may be expected if the current situation does not improve.
Note: The article above as well as the predictions are based on the current situation of the market and should not be perceived as a financial advice. Traders should do their research before making a decision.
