Ether Rises Past $4,000 for the First Time Since March 2024

Latest crypto news by Shariff Akankwasa.

In a great development for the cryptocurrency market, Ether (ETH) has increased past the $4,000 mark, reaching a price of $4,015.03. This milestone is a notable recovery, as it is the first time Ether has crossed this threshold since March 2024.

The recent price movement can be traced back to the Dencun upgrade, which was implemented in March 2024. This upgrade had a great impact on Ethereum’s ecosystem, which caused a reduction in fees associated with layer-2 scaling networks. However, this resulted in a staggering 99% decline in revenues for Ethereum’s layer-1 network, leading to decreased demand for the cryptocurrency.

Despite the initial setback, there are signs of recovery. Network fees, which had plummeted during the summer months, began to show a rebound in September 2024. Data from Token Terminal reveals that the Ethereum base layer generated about $10.9 million in fees on December 5, a stark contrast to the mere $500,000 in fees recorded during the peak of fee suppression in August 2024.

Bitcoin Surges Past $100,000 as Trump’s New Era Sparks Crypto Excitement

Analysts are very positive about Ether’s future, with some projecting that the cryptocurrency could reach as high as $7,000 during the current market cycle. This will be due to increased inflows from exchange-traded funds (ETFs) and a good community of developers actively building on the Ethereum blockchain.