Ethereum Breaks Resistance but Gas Fee Remains High

Ethereum Breaks Resistance but Gas Fee Remains High

Ethereum had its major price breakout a week ago. The cryptocurrency went past the $300 resistance level, above its price to beat of $250. ETH/USD currently trades at $320, securing its spot as one of the strongest crypto pairs in the market.

The $365 high in 2019 is bright for the resurging ether. The US/ETH duo could reach $480, according to analysts. This stems from positive fundamental developments surrounding cryptocurrency in recent weeks, brought by deteriorating trust in fiat.

The bullish trend in ether price may shift from $290 to $300 during anticipation for medium-term gains. On the other hand, Bitcoin also prepares to rally above the $10,000 mark.

However, Ethereum has long been criticized for maintaining high gas fees especially when there is network congestion. The ETH transaction fee is on a steady increase since May.

To date, total network fees for Ethereum increased at an average of 1,077% since May 5, or $162,200 to $1,909,000.

Nevertheless, this hefty sum is the price investors need to pay for long term profit. Higher rewards for miners result in higher profits for traders.

The DeFi boom is one of the reasons behind high fees, another is transaction spamming.

Ethereum Futures Climbs to a New High

The altcoin’s bullish performance encourages investor confidence in its long term sustainability.

The Ethereum Futures surge to record-high. Open interest to be settled reached $1 billion, offering a bright outlook for ETH’s futures market. Fresh money circulating into the market signifies the growing influence of Ethereum in the crypto world.

The main driver of the climb is the unprecedented surge of the decentralized finance market. The platforms welcomed large traffic of new users since mid-June. DeFi has now a $4 billion locked value, quadruple from its value from the same time last year.

Similarly, anticipation for ETH 2.0 launch in early August supports the enthusiastic mood of investors. By July 21, daily contract calls, or a measure for network activity reached an all-time high of 3.1 million.

 

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