Ethereum Price Peaks Amid Soaring Network Fees; SEC Delays on ETF Applications

By: Eva Baxter

Ethereum's price has outpaced its resistance zone at $3,550, showing signs of strength and favorable future trends. Following Bitcoin's surge, Ethereum has seen an increase in its price, now consolidating its gains at over $3,650 amidst bullish trends and a strong support level at $3,600. A move towards the $3,850 and ultimately, the $4,000 threshold could be in sight if markets maintain their current bullish trends.

Simultaneously, the Ethereum network's transaction fees have seen a significant surge, coinciding with the rise in Ethereum's price. Network fees peaked at 79 gwei, with peak costs reaching as high as 219 gwei. This surge in fees has resulted in network fees surpassing $33 million in a single day, marking a threefold increase compared to the beginning of this year. Market participants have also expressed hope that these soaring fees may be addressed by the upcoming Dencun upgrade, anticipated to address Ethereum's historical challenges of high fees and limited throughput.

However, the US Securities and Exchange Commission's (SEC) ruling on multiple pending Ethereum exchange-traded fund (ETF) applications remains delayed. The regulator, seeking public comments, has raised questions about potential fraud, manipulation risks and concerns about Ethereum's proof-of-stake consensus mechanism. Despite this, major crypto stakeholders such as Coinbase continue to advocate for the approval of Ethereum-based ETFs.