The crypto market is closely watching developments around Ethereum price has 2.0 as it is set to introduce a significant upgrade around June 2022.
We are proceeding towards ‘The Merge’; one of the key positive developments is the ETH fee drop.
As per on-chain data provider Santiment, the ETH fee has dropped by a staggering 90% over the last six months.
Moreover, it adds that this could have also contributed to the ETH price surge.
The data provider mentioned that Ethereum prices have been much more affordable than we’ve seen for the past 8+ months. In addition, the average gas fee sits at just $5.81.
For comparison, average fees bloated to $69.57 on May 11, 2021, and $62.85 on November 8, 2021.
Besides, data provider sentiment mentions that Ethereum (ETH) has shown a more significant correlation to the S&P 500 over Bitcoin (BTC).
It also adds:
Ethereum, not Bitcoin, is the greatest asset staying tightly correlated to the #SP500‘s performance. And since the #FOMC announcement 3 weeks ago, this has been good news for $ETH.
Lastly, Experts say the crypto market also reflects the heightened volatility that comes with war.
Ethereum Price Bounced Up Recent Week!
Ethereum has bounced up and down in recent weeks. It follows an immediate drop below $2,400 on Feb. 23 after Russian President Vladimir Putin ordered troops into Ukraine.
Moreover, Bitcoin has followed a similar pattern. Experts also point to other factors like the crypto market tracking the stock market, more mainstream adoption, and slumping prices. In addition, recent months contribute to what we’re seeing with crypto prices right now.
Moreover, even before the war in Ukraine, the volatility for Ethereum came amid continued surging inflation.
The stock market’s worst month since March 2020, and ongoing indications that the Federal Reserve. It will begin raising rates at its next meeting in March to counteract inflation.
Furthermore, Government officials have also continued to show an interest in more crypto regulation and even the possibility of creating a government-issued digital currency. Bitcoin’s price has had a similarly rough stretch lately.
All this has made for a shaky start to the year for Ethereum, which in January dropped below $2,200 — the lowest Ethereum’s price had been since July 2021.
In addition, Ethereum’s price has been between $3,100 and $3,500 so far this week. Here’s how its current price compares to its daily high point over the last few months:
ONE WEEK AGO (MARCH 23)
ONE MONTH AGO (MARCH 2)
3 MONTHS AGO (DEC. 30)
$3,032
$3,001
$3,682
After topping $4,100 on Dec. 27, Ethereum has ranged between $2,100 and $4,000 in the days since. Despite the slow start to 2022, many experts are still bullish, predicting Ethereum’s price could potentially hit and exceed $12,000 this year.
Despite the recent slump, Ethereum still had a relatively strong close to 2021. Ethereum set a new all-time high when it went over $4,850 on Nov. 10, and it carried that strength into December before falling back by the end of the month.
Even with the late slump, Ethereum closed the year way over where it started: In January 2021, Ethereum’s price was just a little over $1,000.
