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Ethereum Surges Close to $4,000 Mark
Ethereum recently experienced a significant 4% surge, nearly reaching the coveted $4,000 milestone. According to data from Coinmarketcap, the coin halted its climb at $3,998. This latest upward movement is particularly notable in contrast to the lackluster performance seen in conventional equities. In comparison, Ethereum and Bitcoin have managed to outperform SP500 returns by 14.7% and 10%, respectively.
Ethereum Network Fees Hit Two-Year High
Despite the positive price movement, Ethereum’s network fees have surged to a two-year high amidst the ongoing hype surrounding meme coins. A recent report from IntoTheBlock highlights a substantial increase in Ethereum’s network fees, reaching levels not witnessed since May 2022. This surge in fees is a direct result of Bitcoin achieving its all-time high, with traders now turning their attention to high-risk, high-reward options like meme coins.
These speculative activities have contributed to a threefold surge on average within the meme coin sector over the past month alone. However, this increased activity has also caused network fees on the Ethereum platform to escalate. While this development may benefit existing ETH holders, it poses challenges for new traders entering the market. The average fee on Ethereum has risen to $28 over the past seven days.
Market Performance and Price Predictions
Looking ahead, Ethereum is once again poised to breach the $4,000 mark in terms of market performance. At the time of writing, ETH is trading at $3,978, reflecting a 0.72% increase in the past 24 hours. Market analysts and Ethereum price predictions suggest that the coin is likely to surpass the $4,000 threshold in the near future.
Bitcoin has also recently surpassed the significant resistance level of $70,000 for the first time in history. Similarly, market expectations are high for Ethereum, which holds the position of being the second-largest cryptocurrency in terms of market capitalization. Moreover, Ethereum’s network fees have generated over $190 million within a week, with an annualized rate exceeding $10 billion.
Ethereum ETF Approval Prospects
Notably, discussions are underway between Coinbase, Grayscale, and the SEC regarding the potential approval of an Ethereum exchange-traded fund (ETF), akin to the one previously approved for Bitcoin earlier this year. The approval of the Bitcoin ETF resulted in the cryptocurrency reaching its all-time high within a matter of months.
If the SEC grants approval for an Ethereum ETF, similar price movements could be seen, potentially allowing Ethereum to reclaim its peak value before the end of 2024.
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