Ethereum transaction fees have surged significantly over the past week, with costs rising by 498% above the previous 30-day average. According to a report from Coinbase, the average gas price from September 16 to September 26 has climbed, with the median transaction on Ethereum now costing $1.69, a stark increase from $0.09 at the start of the month.
Coinbase analysts, David Duong and David Han, noted that there is no single cause for this uptick in on-chain activity. They highlighted that decentralized exchange (DEX) volumes have increased by 9% week-on-week, while total ether transfer volumes have grown by 17% during the same period. These increases are correlated with higher transaction fees.
In addition to rising fees, Ethereum has broken above its relative strength index (RSI) downtrend line, which has persisted since its peak of over $4,000 in March. Analysts from Kraken suggest this shift could indicate a bullish trend, with the key resistance level now at $2,813. However, Ethereum remains below its 200-day exponential moving average (EMA), which stands at $2,882, a significant resistance point that must be reclaimed for a confirmed long-term bullish reversal.
Optimism is also returning to the ether derivatives market, with the futures funding rate's 30-day moving average showing positive trends. Julio Moreno, Head of Research at CryptoQuant, explained that increasing funding rates typically indicate a willingness among traders to open long positions, historically associated with expectations of higher prices. Despite this, he cautioned that a slight increase does not guarantee a sustained price rally.
As of the latest data, Ethereum's open interest-weighted funding rate has remained positive since the U.S. Federal Reserve's interest rate cut on September 18, currently at 0.0061%. Ethereum's price has also seen a rise of over 1.6% in the past 24 hours, trading at $2,687 as of 11:28 a.m. ET.
