Originally published on: December 06, 2024
In an exciting turn of events, the price of Ether has surged above the $4,000 mark, marking a significant milestone not seen since March 2024. This surge comes after a period of lackluster performance, with Ether gaining 2.8% in just one day and a remarkable 10.7% over the past week, according to data from CoinMarketCap.
This positive trend for Ether follows a long period of trading below its 200-day exponential moving average, indicating a dynamic level of support. Currently, the relative strength index (RSI) stands at approximately 71, signaling an entry into overbought territory.
The recent rally that ignited on Nov. 6, following the announcement of Donald Trump’s victory, has led analysts to believe that Ether’s price could potentially reach $7,000 during this market cycle. This optimism is fueled by record inflows from exchange-traded funds and a thriving ecosystem of developers actively building on the Ethereum blockchain.
The release of the Dencun upgrade earlier this year led to a dramatic decrease in fees for Ethereum’s layer-2 scaling networks, causing a 99% reduction in layer-1 revenues. However, network fees began to rebound in September, with Ethereum base layer generating approximately $10.9 million in fees on Dec. 5, compared to a mere $500,000 during the fee suppression in August.
Despite initial concerns about the Ethereum network’s viability due to competition from layer-2 networks, Ethereum Foundation researcher Justin Drake proposed a solution to boost the network’s scalability. Drake’s proposal involves introducing a native sequencer on the layer-1 network run by Ethereum validators, enhancing composability between decentralized applications and rollups in the ecosystem.
With the recent resurgence in Ether’s price and promising developments on the Ethereum network, many are wondering if Ethereum is poised to catch up with other leading cryptocurrencies like Bitcoin and Solana. As always, it’s essential to conduct your own research and make informed decisions when it comes to investments and trading moves. Don’t miss out on critical insights and investment opportunities – subscribe to our Markets Outlook newsletter for weekly updates on the latest trends and strategies.