Ethereum Price Hits Two-Year High as Network Fees Soar and SEC Holds Back on ETF Decision

Transaction fees on the ethereum blockchain saw a significant increase in the last 24 hours, coinciding with the price of eth surpassing $3,700, marking a two-year high.

This development comes amid the US Securities and Exchange Commission's (SEC) delay in ruling on multiple pending applications for spot eth exchange-traded funds (ETFs).

ethereum price surge coincides with high network fees

Over the past day, the price of eth jumped about 7% to around $3,720 at the time of publishing, its highest price level since early 2022.

The surge brings eth's total rally to more than 60% over the past month, as the blockchain network reflects a broader crypto market revival that has driven bitcoin's price above $67,000.

However, ethereum network gas prices skyrocketed amid this upward price trajectory, reaching an average peak of 79 gwei, with maximum costs reaching as high as 219 gwei, according to Etherscan. data. Several ethereum users took to social media to discredit the high fees and how it affected their trading activities, including token swaps and lending transactions.

Surprisingly, this increase in rates caused total network rates to exceed $33 million in a single day, a three-fold increase compared to the beginning of the year, according to data from Cryptofees.

Meanwhile, market watchers noted that the impending Dencun upgrade could address these high fee challenges. This update is expected to address ethereum's long-standing issues: slow transaction speeds, limited throughput, and high fees.

SEC Delays Detect ethereum ETF Decision

Despite ethereum's Impressive Rise, the SEC Has Further Delayed Its Decision on Black Rock and Fidelity ethereum ETF App.

The regulator is seeking public comment on the potential fraud and manipulation risks associated with an eth spot ETF and has also raised questions about ethereum's proof-of-stake consensus mechanism.

Meanwhile, the SEC's decision is not surprising as market participants remain divided over whether the regulator would give the green light to the ethereum ETF. Industry insiders say the SEC remains cautious about cryptocurrencies despite its recent approval of a bitcoin spot ETF.

However, major cryptocurrency stakeholders such as Coinbase have advocated for the approval of eth ETFs.