Recently, total gas consumption on the Ethereum network plummeted to 4,507,912,628 – the lowest level since October 2022. With Ethereum (ETH) trading below $1,600, this gradual reduction in gas usage coincides with the market-wide correction.
According to a Glassnode chart shared earlier today, the previous 4-month low occurred on Feb. 8. The blockchain data provider revealed that Ethereum gas usage continues to decline, persistently hitting lower lows since the peak a few weeks after the Merge last year.
In spite of the fact that GAAS usage has not fallen below 4.5 billion since October, if the current decline continues, the network may see a break below this mark. A decrease in gas usage historically indicates a lower demand for computational resources on the network. This could indicate a drop in transaction volume or a shift in user behavior away from gas-intensive activities like DeFi trading.
Ethereum is facing bearish opposition
This steady decline comes on the heels of the bears’ most recent market-wide opposition, to which Ethereum has not been immune. The asset has dropped 7.79% in the last week after suffering two consecutive losses in the previous two days.
On Feb. 9, Ethereum experienced its largest intraday loss of the year, following a 4-month low in gas usage the day before. On that day, the asset lost up to 6.37% of its value, falling below $1,600. ETH has continued to trade below the price territory, with bears aiming to push the asset below the $1,500 mark. The asset is currently trading at $1,503.
Despite the unfavorable price movements, investors have been steadily sending their ETH tokens to exchanges, a behavior that often indicates a desire to sell. According to the CryptoQuant Exchange Netflow metric, net ETH deposits are higher than the 7-day average.
Furthermore, the blockchain tracking system Whale Alert recently reported that a large ETH whale address with a balance of 100 ETH was recently activated after sitting dormant for seven and a half years.