Ethereum price can potentially surge higher than $2,000, and here’s why
Although Ethereum (ETH) price have just risen to a seven-month high, signaling a rise in demand, the network hasn’t witnessed a rise in transaction fees, suggesting that the coin value may continue to rise. Ethereum did, in fact, momentarily reach the $1,840 threshold, something it hasn’t done since August 18, 2022. Despite the strong demand, its network transaction prices have decreased below $2.
Ethereum fees on March 19 decreased to $1.75 as the price reached $1,842, as shown in the platform’s chart. In contrast, the network fees significantly increased to $8.12 on March 11, just as the cryptocurrency price had reached a low point of $1,380.
“Ethereum’s price hadn’t eclipsed $1,840 since August 18th. Despite this 7-month high, the network hasn’t appeared to heat up and create notable transaction barriers due to high demand. This is a good sign that $ETH has a door open to $2k and beyond”, Santiment reported.
In addition to the weekly and monthly increases of 13.12% and 5.86%, Ethereum was trading for $1,776 at publication, showing a growth of 6% in the last seven days.
ETH/USD 4-hour chart | Source: TradingView
Another thing to remember is that the second-largest digital asset by market capitalization will have its supply cut by 66,000 ETH in 2023, making it deflationary and appealing to investors and traders looking for scarce crypto assets with the hope that its scarcity will increase their value.
A significant increase in the price of ETH may also result from the critical Shanghai update, also known as Shapella, which is scheduled to launch on the Ethereum mainnet on April 12. This upgrade promises to permit validator staking withdrawals and other significant improvements.
Before that, last week’s market turbulence following the de-pegging of the USDC stablecoin and the closure of Silicon Valley Bank – one of the few sizable U.S. institutions to go bankrupt recently—led to ETH making the most significant gain of almost 17% overall for the first time in 250 days. Silvergate Bank stopped operating before SVB and began looking for buyers. Following SVB, Signature Bank failed. These three banks all worked with companies and exchanges that specialize in cryptocurrencies.
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