Ether price returns to $4K for the first time since March
2024-12-06

The price of Ether ETHUSD has broken past the $4,000 price level following months of lackluster price performance — reclaiming levels not seen since March 2024.
The release of the Dencun upgrade in March 2024 dramatically lowered fees for Ethereum layer-2 scaling networks, causing Ethereum layer-1 revenues to collapse by 99%.
Decreased fees translated into reduced demand for the smart contract cryptocurrency. However, network fees began to rebound in September 2024.
According to data from Token Terminal, the Ethereum base layer generated approximately $10.9 million in fees on Dec. 5. For comparison, Ethereum was generating fees in the $500,000 range during the height of the fee suppression in August 2024.
Analysts believe that the price of Ethereum could reach $7,000 during the current market cycle, bolstered by inflows from exchange-traded funds and other investment vehicles, and a robust ecosystem of developers building on the Ethereum blockchain.