Ethereum Could Break $2k despite Gas Troubles
The Ethereum price is grinding higher, flirting with $2k. As such, the utility coin is trading at new all-time highs above $1.9k. With the expansion of ETH/USD prices, DeFi's total value locked (TVL) is now above $41 billion. Nevertheless, the network experiences chronic Gas fees trouble. As of writing, the average transaction fee to post a single transaction in the leading smart contracting platform is $19, several folds more expensive than those in alternative networks like EOS, Tron, and Binance Smart Chain.
Utility is the lifeblood of any public network. Ethereum is no exception. The problem is that Ethereum's architecture and Proof-of-Work causing redundancies is technically limiting the network from scaling higher, forcing transaction fees to the roof. Instead of mitigating the situation, miners are auctioning higher, only accepting bids with higher fees. As a result, developers are searching for solutions with EIP-1559 likely to pass even with miner disgruntlement. Still, rising Gas fees isn't preventing Ethereum bulls from driving prices higher. ETH/USD may breach $2k and, after that, rapidly rally to $5k or better in coming weeks/months.
Impact on ETH Prices:
Bullish. $2k is a round number and is psychological for bulls. If breached and ETH bulls fly to new all-time highs, it will be costlier for the end-users. The resulting FOMO may propel ETH/USD prices to new territories, causing Gas prices to reach unreasonable reasons.
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