Ethereum gas fees have just hit a new high, skyrocketing to 222 gwei. According to Wu Blockchain, this happens because:
“Binance consolidated funds from countless deposit addresses to the Binance14 hot wallet in preparation for the next stage of POR check.”
This resulted in Binance generating 889 ETH in gas fees and transferring over 437,000 ETH to validate PoR and maintain customer trust.
However, a spike in gas fees could have a negative impact, as high gas fees affect retail investors and overall sentiment toward Ethereum.
From the chart below, it can be seen that the sentiment toward Ethereum is pessimistic. However, despite that, large addresses have continued to accumulate ETH.
The percentage of ETH held by large addresses increased significantly after 11/16. Support from these wealthy holders can help sustain Ethereum’s growth.
Another positive for Ethereum is the significantly higher network activity.
The number of active addresses on the chain jumped over the past two weeks and reached 33,300 addresses at press time.
Along with the aforementioned information, the number of addresses holding more than 0.01 ETH also hit a 4-month high of 22,000 addresses, according to Glassnode.
Although major addresses are actively supporting and active on the Ethereum network, traders are not confident in Ethereum’s growth potential.
Looking at the image below, the funding rate for Ethereum is falling deeply. As a result, the number of Short ETH traders increased, and are willing to pay Long traders.
It has not been determined whether these Short Sellers can make a profit or not. At the time of writing, ETH is trading at $1,256, down 1% over the past 24 hours.
(Reference: AMBCrypto)
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