At present, Ethereum is struggling to hold any value within the markets. Of course, the majority of cryptocurrencies are taking big hits at the moment, with the bears taking hold of the markets, overall though Ethereum’s performance has stood out as quite weak.
As a currency with the second highest market capitalisation, ETH is somewhat responsible for encouraging the direction of the markets, as is Bitcoin.
At the time of writing, Ethereum is valued at $621.38, down 9.74%. As you can see, ETH is now very close to falling below the $600.00 threshold. If this does happen, indeed, we expect Ethereum to see some massive resistance when it eventually tries to move back up over $600.00. This is bad news for recent investors, although overall, we shouldn’t remain too negative, ETH is of course very likely to improve from this.
According to Cryptovest, recently, Ethereum’s transaction fees have increased somewhat, in line with extended activity within DApps on the Ethereum network.
Ethereum transaction fees are increasing due to increased activity again. While they are far from the $4+ fees seen in January, it appears that some phenomenon is causing them to reach levels we have not seen since the beginning of March. The current rate of an ETH transaction right now is just above $0.60. It has been on a steady climb since early April after plummeting since the beginning of the year.
As we know, previously this has caused significant problems within the Ethereum network. Simply put, an overload from DApp activity can entirely the system, meaning that trading is likely to halt and of course, exchanges and wallet activities also cease to function. While it is unlikely to happen, the risk is always there.
Is this causing the demise of ETH?
It’s strange, overall the fall we see in ETH is most likely just down to the current bearish market we are seeing. With all cryptocurrencies struggling along, Ethereum is helpless to break from this pattern alone, even with improved activity on the network. Now, of course, increased transaction fees may be putting investors off, which could have further suggestions for the value of Ethereum, overall though, this demise will only be temporary, considering the markets level out soon enough.
As activity on the network increases, we should keep an eye on how ETH performs. Let’s hope for the best and let our fortunes be on our side. Until then lets HODL.