Ethereum price news: ETH breaks records above $2,100 and strengthens against BTC

Ethereum price news: the world’s second-largest cryptocurrency has just broken records above $2,100. But will surging transaction fees affect future growth?

There was some big Ethereum price news on Friday April 2, with the world’s second-largest cryptocurrency reaching all-time highs.

ETH price analysis shows that the record of $2,036, set on February 20, was broken – and as the weekend began, the coin managed to reach $2,152.45.

Despite concerns over high transaction fees, the Ethereum price outlook is rather bullish. Many analysts now believe that ETH has the potential to hit $2,500 in the near term.

Fireworks are also expected in July, which is when EIP-1559 will come into force. This controversial improvement proposal will result in sweeping changes concerning how users pay transaction fees.

Ethereum price trends suggest that such reforms are desperately needed. Figures suggest that the average transaction fee on this blockchain is currently $22.88 – rendering the network unaffordable for many. A year ago, this stood at just $0.09.

All of this has contributed to a surge in demand for rival blockchains that allow for greater numbers of transactions to be processed, and with less expense. Binance Smart Chain, Polkadot and Cardano are just some of the networks that are starting to be favoured by DeFi protocols and NFT marketplaces in particular.

Ethereum price analysis: What’s next

The Ethereum (ETH) price now is 25 per cent higher than it was seven days ago. By contrast, Bitcoin has risen by just 8.6 per cent over this same period, with ETH strengthening against BTC as a result.

But with Ether’s market cap standing at $243bn, the cryptocurrency faces an uphill struggle if it has any prospect of “flippening” Bitcoin, which has an overall valuation of $1.14trn.

One significant piece of Ethereum price news that may have contributed to this week’s surge lies in how Visa has announced that it plans to allow crypto partners to use this blockchain to settle transactions made in fiat. This has widely been interpreted as a significant milestone for adoption – and comes as the likes of Mastercard and PayPal also vie to make it easier for everyday consumers to use cryptocurrencies to make purchases.

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Ethereum price analysis shows that April tends to be an exceedingly bullish month for this digital asset. The cryptocurrency has only delivered a loss in April once – and that was all the way back in 2016. For context, ETH delivered gains of 55.4 per cent in April 2020, 18.5 per cent in April 2019, 70.3 per cent in April 2018, and 67.7 per cent in April 2017.

Considering ETH started 2021 at a mere $733, the cryptocurrency has now effectively trebled in value in the space of three short months. By comparison, ETH surged by 456 per cent over the course of 2020.

The question now is whether further gains lie ahead. ETH’s price did cool dramatically within a week of the digital asset hitting $2,000 for the first time – falling as low as $1,350.

Although there’s no shortage of enthusiastic predictions for Ether going forward – with $5,000 and $10,000 bandied about as potential price targets – an asset’s value never goes up in a straight line, and there may be bumps along the way.

Trade Ethereum to US Dollar - ETH/USD chart 

Ethereum to US Dollar
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High: 1964.52

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FURTHER READING: ETH price analysis (7-13 June): downtrend to end?

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