ETHGas down 92%, hits all-time low – Can GWEI’s price recover?

ETHGas [GWEI], which tracks the gas fees on the Ethereum [ETH] network, is down by more than 10% in the past 24 hours. It is a measure of the Ethereum ecosystem’s usage.

Notably, the daily trading volume was a reflection of this price decline, as it decreased by 49% to around $20 million. This decline confirmed the loss of trader interest in GWEI.

Hence, what were the specifics behind the decline in the price of ETHGas?

Why is the price of ETHGas falling?

Interest in GWEI declined because the token’s intrinsic value is linked to Ethereum gas fees, which were falling. This decline was occurring despite the ongoing Ethereum ecosystem upgrades.

At press time, ETHGas was at its all-time low (ATL) of 0.042 GWEI, indicating minimal network congestion and user demand. When fees are this low, the token’s core utility and speculative demand evaporate.

Worth noting, high fees were on NFT sales, indicating demand on the Ethereum network leaned toward the sector.

As fees traded at an ATL, both institutions and retailers were selling the token on CEXes and DEXes due to its low demand. For instance, retailers were mainly using PancakeSwap DEX, OKX, and Bitget to offload their holdings.

Moreover, KuCoin and Gate were moving their holdings from cold wallets to hot wallets. Gate moved 20 million GWEI worth $591K in two transactions, while KuCoin moved 30 million GWEI worth $800K in three transfers.

In total, well over 50 million GWEI valued at around $1.40 million were sold in 24 hours, excluding the retailers’ distribution.

Overall, exchange balances were going up, about 3.7 million tokens in 24 hours, affirming the intention to sell GWEI across the crypto divide.

Can GWEI bounce from its all-time low levels?

GWEI price action aligned with the low network demand. The token has dropped around 92% from its peak value of $0.2519 in late June.

The net volume showed a fall from 5.37 million to negative 9.15 million. This indicated a massive distribution event, though it was starting to stabilize.

While bears had forced a breakdown below a broadening wedge pattern, bulls were giving hints of potential price recovery.

In fact, the MACD was having a crossover with bars blinking green for the first time since the 7th of July. As such, this development could indicate that ETHGas was on track for a recovery.

Therefore, GWEI remains in a bearish market structure unless Ethereum’s high network usage and user demand return.

Final Summary

• ETHGas declined by more than 10% in 24 hours due to Ethereum’s minimal network congestion and user demand. 
• GWEI broke below a massive broadening wedge pattern and hit an ATL of $0.01892, but bulls were showing signs of a return.