Analysis: Low ETH gas fees signal positive mid-to-long-term outlook

On-chain analytics platform Santiment reported on X that Ethereum's (ETH) average transaction fee is currently $0.41, significantly lower than the two-year peak of $15.21. Notably, low gas fees indicate reduced network congestion and are generally a positive signal for ETH’s mid-to-long-term price outlook. Santiment further explained that low fees often occur when traders perceive token prices as bearish, creating favorable conditions for new buyers to enter the market. In contrast, high fees typically reflect increased network activity, often during rapid price surges, but can also discourage traders and trigger short-term corrections. “Extremely low fees (like we're seeing now) will often incentivize users back and allow the network's utility to rise to a prosperous rate,” according to the post.