Recently, leading on-chain data analytics provider CryptoQuant's author MAC.D offered an insightful explanation of Ethereum's (ETH) price decline. The cause and effect relation was examined in an article shared by CryptoQuant on Twitter. In the article, MAC.D suggested that the fall was triggered by excessive transactions that took place following the Shanghai upgrade and the activation of the Ethereum network. He also added that when the number of transactions increases, the network overheats and users compete to pay higher gas fees in order to complete transactions.

In addition, the author pointed out that Ethereum currently has an average gas limit of 21,000 units of gas which is important to prevent the cost of gas from getting too high. He also mentioned that when the total of Ethereum transaction failures rises above 200,000, it leads to the market becoming overheated, often resulting in a price correction.

To make sense of the current market situation, MAC. D took reference from the BTC MVRV cycle indicator and proposed that ETH is currently at a low and there is still more room for growth. He suggested that this situation could be seen as an opportunity to accumulate ETH.

At present, Ethereum is valued at $1,900.12 with a surge of 1.80% in the last 24-hours, as per CoinMarketCap. The analysis by CryptoQuant's MAC.D provides a comprehensive overview of the causes and potential effects of the current market conditions. This could help those interested in investing in Ethereum to make more informed decisions.



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