Average Ethereum transaction fee hits $7.70 as price falls below $500

The price of the second-largest cryptocurrency by market cap fell below $500, even though Ethereum traded above $600 on November 24.

In the chart below, the shift from a rally in ETH to a plunge is visible, supported by a spike in trading volumes. The price hit a local low around $480 and then bounced a little.

Four-hour BTC/USD chart from Bitstamp on TradingView.

Against a backdrop of a strong downward move, Ethereum’s gas price rose sharply. This appears to be driven by increased transaction demand.

Gas price recommendations in Gwei. Data: ETH Gas Station.

As a result, the average Ethereum transaction fee rose to $7.70.

At the time of writing, the average Ethereum transaction fee was higher than Bitcoin’s. Data: Blockchair.

Prominent trader Michaël van de Poppe believes that the current correction is temporary, and that ETH’s rally will resume soon.

$ETH #ETHEREUM

Still the same idea. pic.twitter.com/NWC8I4Nsx0

— Michaël van de Poppe (@CryptoMichNL) November 26, 2020

In his view, the so-called ‘altseason’ will come after Bitcoin hits the $14,000 support level.

$16,000 -> $18,000 -> $14,000 -> altseason

— Michaël van de Poppe (@CryptoMichNL) November 26, 2020

Earlier, on 23 November, Ethereum surpassed the $600 level for the first time since June 2018.

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