Ethereum hits a new three-year high at $1,160

Ether (ETH), the native cryptocurrency of Ethereum, achieved a price of $1,160 for the first time since January 2018, a new three-year high, then quickly corrected back to $900.

Ethereum hits a new three-year high at $1,160

Ether (ETH), the native cryptocurrency of Ethereum, achieved a price of $1,160 for the first time since January 2018, a new three-year high, then quickly corrected back to $900. Historically, following a strong Bitcoin rally, altcoins see a swift uptrend to catch up — which traders will sometimes call alt season when altcoins trade upward in tandem after a big Bitcoin spike. “The ether slingshot has arrived and is playing catchup to big brother bitcoin,” said Jehan Chu, CEO at Hong Kong-based trading firm Kenetic Capital to CoinDesk, “While ether hasn’t established a store of value narrative, its relatively low price is becoming irresistible to Wall Street investors drunk on bitcoin gains.” The only bad news is that fees for a single transaction involving ether jumped to $10.95 on Monday. Average transaction fees on Ethereum can spike during periods of congestion on the network, as they did during the defi explosion in Summer 2020 when average transaction fees exceeded $12 for several hours. Decentralized finance project Aavegotchi is pushing back its mainnet launch of its non-fungible token digital collectible game due to the high prices on the Ethereum blockchain. Investors don't seem to care, since Ethereum is up 87.35% over the past month and 222.13% over the past three months, compared to Bitcoin at 72.74% and 208.26% (respectively). On November 18, 2020, I wrote Don't sleep on Ethereum, and it appears Ethereum is intent on joining Bitcoin in the spotlight. Ethereum's Layer 2 solution Optimism has said that it expects to launch its preliminary mainnet on January 15. Ethereum has an available supply of 114.1 million ether (infinite supply) with a market cap of $124 billion. Ethereum is trading at $1,086 at time of writing.