With Ether’s price breaking to $ 1,750, Ethereum’s network fees hit an all-time high

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The largest altcoin, Ether (ETH), built from its most recent highs on Feb.5 and soared closer and closer to $ 2,000.

ETH / USD 1-hour candle chart (Bitstamp). Source: TradingView

The ether price hits a record $ 1,750

Data from Cointelegraph Markets and TradingView showed a renewed breakout in ETH / USD during Friday trading.

At the time of writing, Ether was targeting $ 1,750 as 6.5% of daily gains outperformed weekly returns of nearly 22%.

Ether, Bitcoin YTD performance. Source: Digital Assets Data

The move came due to the intense trading interest in DeFi coins, many of which use the Ethereum network as a foundation. DeFi produced many of the best movers in weekly periods.

In the meantime, Ether had already seen a brisk upward trend as the anticipation of the launch of dedicated futures from CME Group, one of the pioneering Bitcoin futures operators, grew. Asset management giant Grayscale started buying ETH again for its Ether Trust this week after a nearly two-month hiatus.

Gas charges are a headache

While some well-known cryptocurrency numbers, including Gemini Exchange co-founder Tyler Winklevoss, celebrated the price move, the highs were accompanied by another record – transaction fees.

As Cointelegraph reported, gas fees on the Ethereum network got so high this week that some exchanges were forced to stop ETH withdrawals altogether.

“This is a legitimate crisis. We have to stock up on popcorn to see how Ethereum works its way out of this crisis,” commented Blockstream developer Grubles.

According to YCharts, the average ETH fee was $ 23.27 on February 4, the last date statistics were available.

While Bitcoin (BTC) boiled below $ 40,000, the macro conditions for BTC / USD seemed to mark a new uptrend. As the S&P 500 hit its own all-time highs on Friday, the U.S. dollar currency index fell, a phenomenon that traditionally implies that Bitcoin will benefit.

DXY vs. BTC / USD chart. Source: Kaiko / Twitter

“Correlation is not a causality, but the trend is pretty clear: # The meteoric rise (and occasional crashes) of Bitcoin is closely correlated with the movements of the US dollar index (DXY),” wrote data analysis service Kaiko this week about the phenomenon.