Ethereum reached a two year high of $445 while open interest on ETH futures remained steady at a record $1.5 billion. Meanwhile, the ecosystem faces climbing gas fees.
Ethereum has risen by 235% year-to-date. Over 25 days, it went up 87% which is almost 400% since its March low. The cryptocurrency is expected to reach higher resistance levels. This trend is likely to be underpinned by higher user activity.
Traders were surprised by a steady price trend for the open interest futures which usually involves a fall after cryptocurrencies experience significant increases in price.
For Ether, open interest rose by over $1.5 billion, after the price of the cryptocurrency rose to $445.
According to cryptocurrency research firm Santiment,
“On Tuesday, Ethereum fees reached all-time high values in both USD and ETH. Since this record breaking statistic was hit, the #2 ranked market cap crypto asset has risen +13% and sentiment has remained positive. This is an indication that although traders obviously prefer”
With higher demand for Ethereum comes complications related to congestion charges. The recent spike in the use of decentralized finance applications and stablecoins has increased traffic on the Ethereum network, causing higher transaction fees. Fortunately, a few platforms still allow for competitive rates.
Among the top contributors to rising gas prices are arbitrage bots used for making trades.
“Of the top 20 contracts this month, arbitrage bots make up for almost 20% of fees…these suspected arbitrage bots in the top 20 have spent around USD$2.5 million worth of ETH on gas this month alone”
Ethereum is an open-source, public blockchain-based platform that uses smart contracts to facilitate transactions on the blockchain. Its system gains significant influence from Bitcoin, the apex cryptocurrency.