Ethereum Sees Surge in Transaction Fees and ETF Inflows Amid Increased Network Activity
Ethereum, the second-largest cryptocurrency by market capitalization, has experienced a significant uptick in network activity and investment interest over the past few weeks. This surge has led to rising transaction fees and renewed inflows into Ethereum-based exchange-traded funds (ETFs).
Transaction Fees Spike Amidst Increased On-Chain Activity
According to a recent report from Coinbase, Ethereum network transaction fees have risen dramatically over the last two weeks. The average gas fees between September 16 and September 26 were 498% higher than the monthly average, with the median transaction cost jumping from $0.09 to $1.69 since the beginning of the month.
Coinbase analysts David Duong and David Han attribute this spike to a surge in on-chain activity, citing several contributing factors:
- A 9% week-on-week increase in Ethereum decentralized exchange (DEX) volumes
- A moderate rise in USDC deposit rates on the Aave lending platform, from 3.5% to 4.5%
- A 17% week-on-week increase in total Ether transfer volumes
The increased activity is also evident in the total Ether fees burned daily, which rose over 900% to 2,097 ETH between September 14 and September 24, according to data from CryptoQuant.
Ethereum ETF Inflows Signal Renewed Investor Interest
Ethereum investment products have broken a five-week negative streak, posting inflows of $87 million, according to the latest report by CoinShares. This marks the first measurable inflows since early August, largely driven by spot Ethereum ETFs.
BlackRock’s ETHA ETF continues to see positive flows, with inflows of $11.5 million on September 27, pushing its net inflows past $1 billion. However, Robert Mitchnick, BlackRock’s head of digital assets, acknowledges that the performance of ETHA has been “underwhelming” compared to its Bitcoin counterpart.
Despite this, Ethereum ETFs collectively registered $84.6 million in weekly inflows, the highest since early August. BlackRock’s ETHA and Fidelity’s FETH were the primary drivers of this inflow, with ETHA’s assets surpassing $1 billion shortly after launching.
ETH/USD Technical Analysis and Price Action
From a technical perspective, Ether (ETH) has broken above its relative strength index (RSI) downtrend line that began at March’s multi-year high of $4,093, signaling a possible bullish shift in ETH’s short-term momentum. However, the cryptocurrency remains below its 100-day and 200-day exponential moving averages (EMAs), which continue to act as barriers at $2,770 and $2,864, respectively.
As of the latest trading session, Ethereum’s price has declined below the $2,600 level. Despite this downturn, ETH maintains a position above its 50-day moving average, indicating a potential short-term upward trend. The Relative Strength Index (RSI) for Ethereum is currently at 53, suggesting that the asset could sustain its momentum.