Crypto analytics firm Santiment predicts that Ethereum (ETH) and altcoins associated with the top smart contract platform will leave many traders on the sidelines. Santiment is closely monitoring Ethereum’s average transaction fee, which has dropped to its lowest level since October 18th, 2023. This decline in gas fees suggests that Ethereum may be reaching a local bottom.

The average fee for Ethereum transactions has plummeted to just $1.12 per network transaction, the lowest average cost in a day since October 18th. Santiment explains that transaction fees tend to peak and sometimes diverge around price tops, but return to their resting state around price bottoms. With the market retracing over the past six weeks, the lack of demand and strain on the network could help turn ETH and associated altcoins around sooner than expected.

As of now, Ethereum is trading at $3,218, marking a 13% increase from its April low of $2,832. Santiment also highlights the strength of certain altcoins operating in the Ethereum ecosystem. Liquid staking assets, such as Lido DAO (LDO) and Rocket Pool ETH (RETH), have experienced a mini-run over the weekend, with their market caps increasing by a combined 5.0%. LDO is currently trading at $2.15, while RETH is worth $3,547.

It’s important to note that the opinions expressed in this article are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl, where this article was sourced, does not recommend buying or selling any cryptocurrencies or digital assets, and it is not an investment advisor.