- Ethereum’s price has surged to a two-year high of over $3,700, sparking a spike in network fees due to congestion
- The SEC has delayed its decision on Ethereum ETF applications, requesting more public feedback on risks related to fraud, manipulation, and proof-of-stake
- While disappointing, the ETF delay was not unexpected given the SEC’s crypto caution; network upgrades aim to address congestion issues as Ethereum price climbs despite short-term headwinds
Ethereum‘s price has hit a two-year high of over $3,700 as network fees surge. The price spike comes as the SEC delays a decision on Ethereum ETFs.
Network Congestion Drives Up Fees
With Ethereum’s price rally, gas fees on the network have also soared, reaching an average of 79 gwei and peaks of 219 gwei according to Etherscan. Total network fees topped $33 million in 24 hours. The fees have impacted users, making token swaps and borrowing more expensive. The upcoming Shanghai upgrade aims to improve transaction speeds and lower fees.
SEC Hesitation on Ethereum ETF
Despite Ethereum’s impressive price gains, the SEC has further postponed its ruling on Ethereum ETF applications from BlackRock and Fidelity. The SEC has requested public comments on potential risks of a spot ETH ETF, like fraud and manipulation. The regulator also raised concerns about Ethereum’s proof-of-stake model.
While disappointing, the delay is unsurprising as the SEC remains cautious on crypto. However, major industry players like Coinbase continue to advocate for ETH ETF approval.
Conclusion
Ethereum’s price surge to a two-year high has been accompanied by a spike in network fees. Meanwhile, the SEC’s ETF decision delay threatens to overshadow Ethereum’s gains. However, upcoming network improvements could address congestion issues. The ETF delay is disappointing but not unexpected given the SEC’s crypto concerns. Overall, Ethereum continues its upward trajectory despite these short-term challenges.
