Ethereum’s gas fees have fallen to their lowest level in six months, despite a modest rally in the price of Ether (ETH) over the weekend. Analysts at crypto analytics platform Santiment say this could be a sign that an altcoin bull run is on the horizon.
The average cost of an Ethereum transaction fell to a six-month low of $1.12 on April 27, according to an April 28th blog post from Santiment.
“Traders have historically cycled between emotional states of believing crypto is ‘going to the moon’ versus it being ‘dead,’ and this can be observed via transaction fees, ” Santiment wrote.
Santiment explained that gas fees tend to peak around market tops and fall to multi-month lows during bear markets.
Ethereum’s gas fees hit an eight-month high in February amid heightened interest in the emerging ERC-404 token standard.
Santiment suggests that the recent decline in gas fees could indicate that activity on the Ethereum network is set to pick up in the future — potentially signaling the start of an altcoin bull run.
“With broader markets largely moving sideways over the past six weeks, the lack of demand and network strain could help ETH and related altcoins reverse sooner than many anticipate.”
Related: Berlin hard fork goes live, promising to make Ethereum’s sky-high fees less painful
