BEARISH
ETH
Short-term
Excessive ETH transaction failures, Markets overheated
1. Ethereum Transaction Failed
In the past, when Ethereum's transaction failures rise above 200,000, it shows a market overheating and has often seen a price correction.
When the number of transactions increases, the network overheats and competes to pay higher gas fees to complete transactions. As a result, If the gas limit is set too low, the transaction may not be completed and may fail, so you are paying higher fees to prevent damage to gas costs.
(CryptoQuant Author NINO recently analyzed that excessive transactions and transaction failures diagnose market overheating.)
2. Ethereum Average Gas Limit
Ethereum average gas limit allows users to specify a maximum gas limit to prevent transaction fees from being too high, and we can see that the average gas limit has recently increased. If the gas limit is set too low, the transaction may not be completed and may fail, so you are paying higher fees to prevent damage to gas costs.
In conclusion, as well as the recent Ethereum Shanghai upgrade, as well as the activation of the network, there is an aspect of excessive transactions. There seems to be an adjustment tax due to overheating, but it seems to be a short-term phenomenon. Looking at the BTC MVRV cycle indicator, it seems that there is still room for further upside, and it would be a good idea to use the corrective market to accumulate.
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