Ethereum (ETH) Fees Skyrocket: Here’s Key Reason Behind It

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently experienced a significant surge in transaction fees, with total fees increasing by nearly 60% this week.

According to IntoTheBlock, activity on Ethereum picked up significantly this week, with total fees increasing by nearly 60%.

Activity on Ethereum picked up significantly this week, with total fees increasing by nearly 60% as people return from holidays. pic.twitter.com/HvJhVWxaqZ

— IntoTheBlock (@intotheblock) September 13, 2024

This spike in fees is closely linked to a notable uptick in activity on the Ethereum network, as people return from their summer vacations. As users get back to their normal lives, they engage more with the Ethereum blockchain, leading to a higher volume of transactions and, thus, a surge in total fees.

In separate on-chain data provided by santiment, mining wallets declined alongside Bitcoin and Ethereum prices in 2024.

In a tweet, on-chain analytics firm Santiment noted that Bitcoin and Ethereum mining wallets have seen declining supply held since the first half of 2024. Ethereum mining wallets now hold a combined 1.18 million ETH, or 4.5% of the supply, since the 2024 peak on June 10.

With this latest mild rebound in the crypto market, Santiment urged traders to look for a jump in their combined supplies as a strong signal that the next bull run might be approaching.

ETH price action

At the time of writing, ETH was up 0.19% in the last 24 hours to $2,348. Ethereum’s relief rally is facing selling near the $2,400 level.

If buyers want to make a comeback, they must kick and hold the ETH price over $2,400. Ethereum may then rise to $2,682 and eventually to the barrier level of $2,850.

If the ETH price falls below $2,300, it could indicate that the bears are in command. That might push the Ethereum price to $2,111. Buyers will attempt to halt the decline around $2,111, but if the level falls, Ethereum may approach the psychological support at $2,000.

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