Bitcoin has made a decent recovery from the $99,200 level it was at last Friday, now trading at $106,200 at the time of writing. This indicates strong market demand, even without major sellers pushing the price lower. If there are no sell-offs at the beginning of the week, we might even hope for a return to the $116,000 range in the coming days.

Meanwhile, over the past weekend, data showed that gas fees on the Ethereum network have dropped to multi-year lows. Nearly any activity on the second-largest cryptocurrency's blockchain is now costing less than $0.05. This development is certainly good news for users accustomed to high transaction costs, especially during peak network congestion.

However, such a sharp decline in fees raises several questions and potential explanations. First, it could be linked to a decrease in activity in the DeFi and NFT sectors, which previously generated significant transaction volume on the Ethereum network. The waning interest in these areas, driven by the overall cooling of the cryptocurrency market, naturally leads to reduced gas demand. Second, we should not overlook the development of layer-two solutions and other blockchains that allow transactions to occur outside the main Ethereum network, significantly lowering fees. Their growing popularity undoubtedly impacts the congestion of the primary network and, consequently, gas prices.

In any case, low gas fees are a positive sign for Ethereum, making it more accessible and attractive to a broader range of users. The only question is how long this trend will last and what long-term consequences it may bring.

Trading recommendations:

Regarding the technical picture for Bitcoin, buyers are currently aiming to reclaim the $108,800 level, which opens a direct path to $111,300, and from there, it is only a short step to $113,500. The furthest target is around $116,300. Surpassing this level would indicate attempts at a return to a bull market. In case of a decline, buyers are expected at the $105,300 level. A drop below this area could quickly push BTC down to around $102,400, with the most distant target at $99,400.

For Ethereum, a clear consolidation above the $3,664 level opens the way to $3,818. The furthest goal is around $3,949; breaking past this level would indicate strengthening bullish momentum and increased buyer interest. If Ethereum declines, buyers are expected at the $3,529 level. A return below this area could quickly bring ETH down to around $3,377, with the most distant support at $3,181.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.