Data from Cointelegraph Markets and TradingView showed that there was a new breakout in ETH/USD during Friday’s trading session.
At the time of writing, Ether was targeting $1,750, while the daily return of 6.5% was better than the weekly return of nearly 22%.
Ether, Bitcoin YTD Performance. Source: Digital asset data
The decision was prompted by strong commercial interest in deFi coins, many of which use the Ethereum network as a backbone. DeFi has released many of the best films on a weekly basis.
Meanwhile, Ether was already being looked forward to when CME Group, one of the pioneers of the bitcoin futures market, launched special futures contracts. Asset management giant Grayscale resumed buying ETH for its Ether Trust this week, after a nearly two-month hiatus.
Gas costs cause headaches
While some well-known figures in the world of cryptocurrencies, including Tyler Winklevoss, co-founder of the Gemini exchange, have celebrated rising prices, these highs have been accompanied by another record: transaction fees.
According to Cointelegraph, the cost of gas for Ethereum has become so high this week that some exchanges have been forced to stop ETH withdrawals altogether.
This is a legal crisis. We’ll have to stock up on popcorn to see how Ethereum will fare, according to developer Blockstream Grubles.
According to YCharts, the average price of ETH on February 4 was at $23.27, the last date for which statistics were available.
Meanwhile, while bitcoin (BTC) simmers below $40,000, macro conditions seem to be helping BTC/USD embark on a new rise. While the S&P 500 hit its own all-time highs on Friday, the U.S. dollar index fell, which traditionally means bitcoin will benefit.
Chart DXY vs BTC/USD. Source: Kayko/Twitter.
The correlation is not causal, but the trend is clear enough: The meteoric rise in price (and periodic declines) of #Bitcoin is closely correlated with movements in the US dollar index (DXY), a phenomenon that data analytics service Kaiko wrote about this week.
frequently asked questions
Why are Ethereum’s network costs so high?
Ethereum (ETH) transaction fees increase when the network is busy. After all, more and more people are conducting transactions such as sending tokens, trading on DEX or investing assets on lending platforms.
What is the Ethereum of all time?
The cryptocurrency soared above $1,800 per token around 9:30 a.m. GMT, up 10% in the last 24 hours. Ethereum’s historic high coincided with Bitcoin’s new record high of $48,000 after Tesla announced a $1.5 billion investment in Bitcoin, giving a boost to the spread of major cryptocurrencies.
. Will Ethereum ever reach 10,000?.
The market price of Ether is currently around $1325, which is below a new all-time high reached in 2021. … Long-term price forecasts suggest that Ethereum could not only reach $10,000, but also much higher prices in the future after breaking its previous historic high.
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