Although the market activity slumped during the weekend, the Ethereum prices rose throughout when the markets were dormant. On Friday, the token reached its maximum price of $3,663, and by the end of the weekend, it reached $3,800. From a weekly opening market price of $3,023, the token achieved $3,800, gaining more than 25% in value. CoinMarketCap’s chart below shows that the token reached this price level after 7 months.
As the excitement in the Ethereum community keeps increasing and the prices increase, it is important to look at factors that may be causing this upsurge.
Increase in gas limit
During the weekend, the gas limit rose to over 37.3 million units from 36 million, according to Etherscan, representing 3% increase. The last significant increase in the gas limit happened during the first week of February, when it reached 36 million from 30 million units.
With the increase of the gas limit, the throughput also increased from 15 tps to nearly 18 tps (transactions per second). The “Pump the Gas” campaign, which demands the gas limit to be increased to 45 million, supported by almost 50% of the Ether stakers, seems to be finally working. The ETH stakers started this campaign in 2024, claiming that the increment in gas limit will reduce the transaction fee/ gas fee on layer 1.
ETH spot ETF inflows increase
The netflow of spot ETH ETFs increased from 7.6K ETH to 178K ETH within a month. This shows that the confidence of investors in the token is increasing. When the investors are buying ETH ETF, then the ETF provider must buy ETH to back those shares. When more ETF is bought on behalf of the investor, it shows a bullish signal.
Ethereum is strengthening against BTC
As the altcoin season index ticks 57, moving closer to the altcoin season, ETH has been getting stronger against its superior Bitcoin. The below ETH/BTC pair chart shows that ETH has started to gain value after reaching 0.0186.
Ethereum has just crossed above the resistance level at 0.03, and the Bollinger bands signal an overbought condition. Since the token is overbought, there might be a slight retracement; however, based on the net inflows and other activity happening on the chain, Ethereum may take a shot at 0.037 soon.
