According to a recent report from Coinbase, Ethereum transaction fees have been on the rise over the past week amid a significant increase in blockchain activity.
The report highlights increased on-chain activity across the Ethereum network, as well as a notable increase in average gas (transaction fee) prices.
Ethereum Network Transaction Fees Experience Huge Increase
Between September 16 and September 26, the average gas price on Ethereum increased by 498% compared to the previous 30-day average. As a result, the median transaction cost has increased sharply from just $0.09 at the beginning of the month to $1.69, according to Coinbase analysts David Duong and David Han’s Coinbase Weekly report.
While there is no single catalyst behind the increase in fees, analysts have pointed to multiple factors contributing to the rise. Decentralized exchange (DEX) volumes on Ethereum increased by 9% compared to the previous week, while total ETH transfer volumes increased by 17% during the same period. These factors have led to a corresponding increase in transaction costs as demand for block space increases.
In a separate report from Kraken, analysts noted that Ethereum has broken above a relative strength index (RSI) downtrend line that dates back to March, when ETH reached a multi-year high above $4,000. The move signals a potential bullish shift in ETH’s near-term momentum.
“ETH recently broke above the RSI downtrend line originating from the March 11 high, signaling a potential shift in momentum,” the Kraken team wrote. The key resistance level to watch is $2,813, which could pave the way for further price gains.
However, despite the optimistic signs, analysts at both Coinbase and Kraken are urging caution. Ethereum remains below its 200-day exponential moving average (EMA), a critical indicator of long-term price trends. Currently at $2,882, the EMA continues to act as a key resistance level.
*This is not investment advice.