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3 reasons why Ethereum (ETH) price nearly broke the $2.5K resistance this week

Press Releases Crypto News Cointelegraph 3 reasons why Ethereum (ETH) price nearly broke the $2.5K resistance this week

Ether (ETH), the native token of the Ethereum network, has risen by 5.5% since Dec. 27, even though it failed to break above the $2,400 resistance. Traders are now questioning what has been driving the price of Ether up and whether these factors remain of importance.

Ether price reaches a 19-month high as traders anticipate a rally above $2,500

The intraday high of $2,446 on Dec. 28 was last seen over 19 months ago. This increase occurred while the broader cryptocurrency market capitalization remained flat at $1.68 trillion. This suggests that Ether’s price could continue its bullish momentum toward $2,500, despite the average transaction fee exceeding $5. While this may not seem excessive, it can be burdensome for most decentralized application (Dapp) users.

One can easily fall for the narratives that competing chains are gaining relevance as critics claim that the Ethereum network has failed due to its limited capacity for scaling and privacy solutions at the base layer level. This negative conversations has been heightened by the recent outperformance of Solana (SOL) and BNB (BNB), which have gained 78% and 44%, respectively, in the past 30 days. As an example, an experienced Solana ecosystem developer, Matty Taylor, posted about this issue on X social network.

Some info for anyone pushing the narrative that Ethereum is best positioned to become the RWA/institutional chain:

TradFi institutions are even more sensitive than memecoin traders to fees, speed & overall infra performance.

See why Visa chose @Solana.https://t.co/tNGpgvNekG

— mattytay (@mattytay) December 28, 2023

However, this analysis fails to consider the undeniable success of Ethereum layer-2 blockchains and the dominance of the Ethereum Virtual Machine (EVM). Moreover, the Ethereum network’s total value locked (TVL) of $29.6 billion invalidates much of the negative assessment. In comparison, BNB Chain holds a mere

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Author: Marcel Pechman

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