Ethereum price has recovered from lows of $2,619 to trade above $2,728.
Incidentally, ETH price as jumped by more than a percentage in the past 24 hours.
The gains come amid a spike in daily volume, with data showing the global trading volume on the Ethereum network hit $20 billion.
While ETH remains below the crucial $3k level and could suffer a bearish flip if sellers eye quick profits, there are a number of catalysts and indicators suggesting bulls could yet enjoy an upward run.
What’s bullish for ETH price?
The rise in spot exchange-traded fund inflows is one such factor.
If institutional demand is back, the next few months could be interesting for Ethereum price.
For instance, Fidelity’s spot ether ETF scooped 1,680 ETH on February 18.
Per SoSoValue data, ETH ETFs saw inflows of $4.60 million to record a third straight day of positive flows.
Ethereum’s Pectra upgrade, slated for testnet in February and March, and mainnet in April, is another potential momentum factor.
However, the short term incentivizer for bulls could be the significant decrease in ETH gas fees.
According to market intelligence platform Santiment, Ethereum gas fees have dropped to a two-year low.
The fees stood at $0.41, compared to $15.21 at its peak in the past two years.
The scenario portends new entry by retail buyers.
“When users are not paying high prices to move their ETH or tokens, it is typically a good sign for mid-term and long-term price outlooks.” Santiment posted on X.
The signal for ETH bulls?
Ethereum’s fees often drops when the native token’s value plummets.
What happens is that as investors take a bearish perspective, they exit.
But its the low gas fees that attract buyers back to the network.
The opposite of this is high fees – often a result of bullish market conditions that mean higher network activity.
Often, high network fees are a result of spiking activity as more users scramble to trade or tap into top Ethereum-based apps.
“Just as extremely high fees can sometimes push traders away or cause short-term corrections, extremely low fees (like we’re seeing now) will often incentivize users back and allow the network’s utility to rise to a prosperous rate,” Santiment analysts wrote.
ETH price and the prospect of a new all-time high
Ethereum reached an all-time high of $4,891 on November 16, 2021 – more than three years ago.
While ETH managed to hit the $4k area, the top altcoin underperformed Bitcoin.
Sell-off pressure meant downside action.
However, Ethereum may be poised for a new surge in coming months.
Earlier highlighted factors are key to this outlook, particularly low gas fees.
Some analysts see ETH price retesting $4,000 in coming weeks, with a potential to run if BTC also breaks higher.
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