The founder of bankrupt Three Arrows Capital (3AC), Zhu Su, stated yesterday that investors can buy Ethereum when gas fees are low and sell when gas fees are high. But is this really the case?
In an exclusive interview, Zhu Su, founder of Three Arrows Capital, discussed various topics including the secrets behind the closure of FTX, market analysis after the halving, re-pledging, and the USDe cycle.
According to Standard Chartered Bank, the probability of an Ethereum spot ETF approval is low. However, they predict that the price of ETH could reach $8000 by the end of the year. The SEC has also delayed its decision until June.
Yesterday, the bankrupt founder of Three Arrows Capital, Zhu Su, posted on the social platform X, stating that Ethereum investors can buy when network gas fees are low and sell when they are high. Is this a good investment strategy?
According to Ethereum Gas Tracker data, the gas fees on the Ethereum mainnet have been on the rise in the past 7 days, with only April 20th to 21st being relatively low.
At the same time, according to CoinGecko data, the price of Ethereum has also been on the rise in the past 7 days, reaching a high point of $3,281 on April 24th, the highest in the past 7 days.
Comparing the price of Ethereum and its gas fees in the past 7 days, there seems to be a certain positive correlation between the two. However, if we expand the timeline to one month, the correlation between gas fees and price weakens.
Gas fees are the transfer fees required to complete transactions on the blockchain. When gas fees are high, it is because there is an increase in network interactions, and miners prioritize transactions with higher fees, thus driving up the fees.
There are various factors that affect the number of network transactions. For example, when there is a meme coin craze on Ethereum, an increase in participants will drive up transaction volume. While this may also stimulate an increase in ETH price, it cannot be considered a golden standard for judging Ethereum’s rise and fall. Investors should carefully consider various indicators before making judgments.
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