$ETH Fees Hit 5-Year Low — Is a Major Comeback Coming?
Ethereum (ETH) gas fees have dropped to just $0.168 per transaction — the lowest level since 2020. According to on-chain analytics firm Santiment, this sharp decline reflects a significant drop in user activity and smart contract interaction, pointing to broader market hesitation.
But could this be the calm before the storm?
Santiment’s Brian Quinlivan says low gas fees are a classic sign of reduced demand. However, historically, these periods of quiet often precede major price rebounds, especially when core fundamentals remain strong.
ETH Price Action:
Currently trading below $1,600, down 12.5% in the past 14 days
Retail traders are cautious following Trump’s tariff announcements on April 2
Market sentiment remains weak despite a 90-day global tariff pause
Enter the Pectra Upgrade — Launching May 7, 2025
Ethereum developers are preparing for a game-changing upgrade that could reignite activity across the network.
Phase One Key Features:
Layer-2 throughput doubled (blob capacity from 3 to 6)
Gas fees payable in stablecoins (e.g., USDC, DAI)
Staking cap raised from 32 ETH to 2,048 ETH (institutional boost)
Lower congestion and faster transactions
What’s Ahead in Phase Two (Late 2025 – Early 2026):
New data structure for better storage
Data Availability Sampling for higher scalability without full replication
While ETH’s network is unusually quiet, some analysts believe this might be the perfect setup for a surprise rebound — especially with a powerful upgrade like Pectra just around the corner.
Will Ethereum bounce back stronger? Or is more downside ahead?
Let’s see what May brings.
