Ethereum has experienced a surge in on-chain transaction fees, reaching levels last seen in April 2024. This increase is attributed to the growing activity in decentralized finance (DeFi) platforms on the Ethereum blockchain. Despite the spike in fees, Ethereum's weekly gas fees signal an overall increase in blockchain activity. Altcoins initially saw a drop in price when Bitcoin fell below $100,000, but some have started to rebalance as Bitcoin rebounds. Traders and institutional investors are adjusting their portfolios, contributing to the fee surge. Ethereum's price has only slightly increased, but market participants remain cautiously optimistic. Exchange flows show a decrease in net outflows, indicating long-term confidence in Ethereum's future price potential. However, there has been a slight increase in net flows, likely due to short-term selling pressure and market volatility. Despite the market retracement, Ethereum's activity remains positive, suggesting traders are focusing on profit-taking rather than high transaction costs.



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