Ethereum breaks $2,500,and reaches the maximum daily closing level

After falling to a low of $2,100 amid speculation that the administration of US President Joe Biden will increase capital gains, Ethereum (ETH) has gained momentum again, rising above the psychological price of $2,500.

Ethereum Broke the Stable Support

Market analyst Lark Davis acknowledged that ETH reached its highest daily close ever, which is an optimistic sign for Ethereum.

According to CoinMarketRate, ETH is up 22.5% in the last 24 hours, and was trading at $2,550 at the time of writing.

The second-largest cryptocurrency by market capitalization is seeing new all-time highs (ATH), and has been rising since breaking its previous record of $1,400 set in 2018. However, it has yet to retest its historical high of around $2,640.

Marketing trader Michael van de Poppe recently reported that Ethereum can monitor the price level of $5,000. His opinion is shared by network metrics provider Santiment, which has shown that the upward trend to $3K and above looks promising for Ether thanks to the booming non-fungible token (NFT) and decentralized finance (DeFi) sectors.

The current price of Ethereum, which exceeds $2,500, exceeds its stable support. With a market cap of $294.73 billion, can Ethereum reach a maximum of $5,000 before the end of 2021? Time will tell, but for now, the average fee for Ethereum gas has reached a 3-month low.

Fee for Ethereum transactions is reduced

The average transaction fee or gas fee for the Ethereum network has reached a 3-month low, below $10. According to network analytics firm Santiment, the average Ethereum gas fee even hit a low of $8.14, which is an improved range compared to the commission of more than $20 recorded in previous months.

Aside from scalability issues, the issue of high transaction costs has largely made the Ethereum blockchain inaccessible to most people. In fact, some users have avoided the rise in Ethereum gas fees by moving some of their assets, such as Tether (USDT), to other blockchains, such as the Tron network, as the average fees are relatively lower. Competing chains such as the Binance Smart Chain (BSC) have also become a viable competitor to the Ethereum network, and many developers and users of decentralized finance are equally drawn to it to launch their DeFi-related products and applications.

Ethereum has a number of protocol improvements to address gas payment issues. The recent Berlin update launched on the main Ethereum network has properly set the stage for the EIP 1559 update, which will make changes to the network fee structure.

In addition, the grand plan to deploy Ethereum 2.0 will mark the transition from the current Proof-of-Work (PoW) model to a more scalable Proof-of-Stake (PoS) model. Many ecosystem participants favor the PoS model, noting that it will bring a more permanent solution to the scalability and high gas fees that the network currently faces. The PoS model is gaining huge support as deposits to the Ethereum 2.0 contract recently surpassed ATH, topping $9 billion.