Gas is the transaction fee required to include your transaction in a block in the Ethereum blockchain. The higher the gas paid, the higher the priority given to the transaction. The gas that is offered for a transaction is paid to the node that eventually confirms that transaction into a block.
The value shown in our indicator is the gas price required to confirm a transaction in a single block, the fastest possible transaction with the Ethereum blockchain. This number is updated hourly, based on the average for a single block confirmation during the previous hour.
When the Ethereum blockchain is quiet, gas prices will be lower.
Conversely when the Ethereum blockchain is busy, gas prices will be higher. When ETH/USD volatility increases gas prices will also be higher due more traders and bots attempting trades/arbitrage
When the ETH/USD market experiences a bullish run the level of congestion on the chain will also be higher resulting in a positive correlation between the upward movement in the price of ETH and the rise in gas fees. Many traders believe that when ETH makes all-time-highs across long timeframes that one of the indicators the price has “topped out” is when the gas price ceases its climb and begins to drop due to an exhaustion of traders attempting to outbid each other to make transactions faster.