Bitcoin

Ether price hits $ 1,750 and Ethereum network fees hit an all-time high

The main coin, Ether (ETH) used its recent highs to get closer and closer to $ 2,000.

ETH / USD (Bitstamp) 1-hour candlestick chart. Source: TradingView

Ether price hits a record high of $ 1,750

Data from Cointelegraph Markets and TradingView showed a fresh breakout in the ETH / USD pair during Friday’s trading.

At the time of this writing Ether was targeting $ 1,750Daily gains of 6.5% outpaced weekly returns of nearly 22%.

Performance of Ether and Bitcoin so far. Source: Digital Assets Data
Ether price hits $ 1,750 and Ethereum network fees hit an all-time high
Ether price hits $ 1,750 and Ethereum network fees hit an all-time high

The move came after an intense interest in trading DeFi currenciesMany of them use the Ethereum network as a base. DeFi produced many of the best engines in weekly periods.

Ether, meanwhile The anticipation of the introduction of dedicated CME Group futures had already risen rapidly, one of the first Bitcoin futures traders. After a hiatus of almost two months, Grayscale began buying ETH again for their Ether Trust this week.

Gas rates cause headaches

While some well-known cryptocurrency numbers, including Gemini Exchange co-founder Tyler Winklevoss, celebrated the price move, The highs were accompanied by another record: transaction fees.

As Cointelegraph reported, Gas fees on the Ethereum network got so high this week that some exchanges were forced to completely stop withdrawals from ETH.

“This is a legitimate crisis. I have to stock up on popcorn to see how Ethereum comes out of it.”, commented Blockstream developer Grubles.

According to YCharts The average ETH fee on February 4 was $ 23.27, the latest date for which statistics are available.

Meanwhile, Bitcoin (BTC) boiled under $ 40,000Macroeconomic conditions appeared to be causing another rally for the BTC / USD pair. When the SP 500 hit its own all-time highs on Friday, The US dollar currency index fell, A phenomenon that traditionally implies that Bitcoin will benefit from it.

DXY vs. the BTC / USD pair. Source: Kaiko / Twitter

“Correlation isn’t a cause, but the trend is pretty clear: # Bitcoin’s meteoric rise (and its occasional declines) are closely correlated with movements in the US Dollar Index (DXY).”, wrote the data analysis service Kaiko on the phenomenon this week.

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