Ethereum Price Nears $4K as Gas Fees Spike and DeFi Activity Soars

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Ethereum Price Nears $4K Once again, making news as its price path points toward the much-awaited $4,000 milestone, is Ethereum (ETH), the second-largest cryptocurrency by market capitalization behind Bitcoin. Ethereum’s on-chain metrics are likewise quite active within a rowing market, with hope. Most importantly, transaction fees on the Ethereum network—gas fees—have skyrocketed to their highest levels in three months, indicating a fresh wave of user interaction and network congestion.

The price surge and rising Ethereum gas fees show a complicated interaction of market dynamics. Investors, traders, and participants in distributed finance are closely watching whether this momentum is long enough to propel Ethereum above the crucial psychological threshold of $4K (DeFi).

Rising Ethereum Gas Fees Signal Network Surge

On the Ethereum blockchain, transaction fees serve as a proxy for network utilisation. Ethereum gas fees usually mean that on-chain transaction demand—that of DeFi exchanges, NFT minting, and smart contract interactions—is accelerating. Data from Etherscan and Glassnode show that average gas fees have reached 80 gwei, a figure not observed since early February.

Several elements have driven this increase. One of the most important is the comeback of NFT minting events on markets like OpenSea, Blur, and Magic Eden, which mainly depend on Ethereum’s Layer 1 network. Transaction volume has also surged with the rise in DeFi apps like Aave, Curve Finance, and Uniswap. This growing demand strains the Ethereum Virtual Machine (EVM), driving higher brilliant contract execution costs.

Additionally, the forthcoming Ethereum Cancun-Deneb upgrade, projected to increase data availability and Layer 2 interoperability, is creating speculative activity. Developers and early adopters are actively testing Ethereum Improvement Proposals (EIPs), which are helping to explain the increase in network utilisation and gas consumption.

Ethereum Poised for Bullish Breakout Momentum

Technically, Ethereum’s price chart is creating a convincing positive framework. Initially, after a multi-week consolidation pattern, the coin has broken out above essential support levels close to $3,500. Positive divergent indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), point to the momentum continuing in favour of buyers.

Volume profiles display accumulation zones between $3,300 and $3,600, suggesting high buyer interest at these levels. Should Ethereum firmly break through the $3,800 barrier, the path to $4,000 may be open, perhaps testing new year-to-date highs. On-chain metrics like active addresses, network value to transaction (NVT) ratio, and total value locked (TVL) across DeFi systems support this optimistic view.

Ethereum’s Rise Fueled by Institutional Demand

Additionally, the larger crypto industry is riding a wave of fresh hope. Recent testing of Bitcoin at $70,000 raised altcoins, including Ethereum. Though recent patterns indicate that Ethereum is finding its own story, notably with the Ethereum ETF proposals under examination by the U.S. Securities and Exchange Commission (SEC), Ethereum has traditionally demonstrated a significant correlation with Bitcoin.

Growing interest in Ethereum-based financial products by institutional companies such as BlackRock, Fidelity, and ARK Invest helps validate ETH as a long-term investing tool. The Grayscale Ethereum Trust (ETHE) has also experienced declining discounts, implying institutional investors expect positive legislative results.

Rising search trends for “Ethereum price prediction” and “how to buy Ethereum” also point to retail interest. Rising trading volumes in ETH pairs on platforms such as Coinbase, Binance, and Kraken point to a revived retail FOMO—fear of missing out.

Ethereum’s Role in Web3 and Price Outlook

Ethereum drives the most extensive and varied ecosystem available on the blockchain; it is more than just a digital asset. From DeFi apps to NFTs, from Layer 2 rollups like Arbrollups, Optimism, and zkSync, to corporate adoption through ConsenSys and the corporate Ethereum Alliance (EEA), Ethereum remains at the core of Web3 invention.

The rising gas prices also sparked the discussion on Ethereum’s scalability. High gas rates still represent the cost of decentralised security Ethereum offers, even as decentralisation progressively shifts transaction load off the mainnet. Expected to drastically lower transaction costs on rollup, the rollup’s so-danksharding (EIP-4844) might fundamentally change user and developer interaction with Ethereum.

Risks and Considerations: What Might Trip the $4K Moment? Despite the positive signals, Ethereum’s price behaviour encounters various challenges. Macroeconomic uncertainty is still a significant concern since the U.S. Federal Reserve’s interest rate choices might affect the crypto markets. Furthermore, government inspection of staking operations and Ethereum’s security classification in some countries influence investor mood.

Technical resistance around $4,000 might also encourage profit-taking, particularly for short-term traders. If gas fees keep rising unbridled, users may become annoyed with high transaction prices and seek cheaper options such as Solana, Avalanche, or Polygon.

Ethereum Price Forecast: Can ETH maintain the increasing momentum? Momentumists are still split about Ethereum’s short-term direction. While some say ETH will consolidate close to $3,800 before reaching new highs, others warn that a correction might follow if Bitcoin dominance rises again. Still, the long term is bright.

Companies such as VanEck and Standard Chartered have published optimistic Ethereum predictions; some estimate values between $4,000 and $5,500 over the next six months, particularly if Ethereum ETFs are legalised and two adoption picks up speed.

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# Ethereum Price Nears $4K

Ali Malik

Ali Malik is an experienced crypto writer specialising in simplifying complex blockchain and cryptocurrency topics for a broad audience. With expertise in ICOs, Web3, DeFi, NFTs, and regulatory updates, he offers valuable insights to help readers make informed decisions. He is proficient in SEO optimisation.

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Trump’s World Liberty Financial (WLFI) Acquires SEI in $775K Deal

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Trump’s World Liberty Financial: According to reports, World Liberty Financial (WLFI) is a cryptocurrency project tied to the Trump family, and it has claimed to invest close to $347 million in different altcoins. Interestingly, as revealed by blockchain data, it currently causes losses for all of them. As a blockchain analysis company, Arkham Intelligence gives a count that WLFI acquired 4.89 million SEI tokens valued at $775,000 on 12 April. It executed this trade via USDC from one of WLFI’s leading trading the same wallet previously used to acquire other altcoins.

WLFI’s Massive Crypto Holdings Face Heavy Losses

WLFI’s investment portfolio includes a mix of significant cryptocurrencies and altcoins, such as:

Bitcoin (BTC)
Ethereum (ETH)
Tron (TRX)
Ondo Finance (ONDO)
Avalanche (AVAX)
Sei (SEI)

However, as of 12 April, another blockchain analytics platform, Lookonchain, claims that WLFI’s investments have produced no profit. The total held in cryptocurrency for the project is around $346.8 million, held in approximately 11 tokens; however, substantial losses have been incurred by the portfolio:

Ethereum (ETH) investments alone are down by $114 million.
Overall, WLFI’s portfolio has lost approximately $145.8 million in value.

Eric Trump’s Ethereum Endorsement

The Trump family has publicly supported cryptocurrencies in the past. On 3 February, Eric Trump, son of former U.S. President Donald Trump, posted on X (formerly Twitter) encouraging his followers to buy Ethereum (ETH): “In my opinion, it’s a great time to add $ETH.” The original post also included the comment, “you can thank me later,” which was subsequently deleted. It remains unclear if it was about WLFI’s investments or a general observation of the market.

Controversy Over Trump’s USD1 Stablecoin

WLFI was also connected with the stablecoin project USD1, which also insinuated some association with Trump; the company, however, has yet to confirm any of these rumours. That rumour generated controversy among Democratic and Republican lawmakers alike. During a 2 April hearing of the U.S. House Financial Services Committee, Democratic Representative Maxine Waters indicated Trump might try to get USD1 to supplant the U.S. dollar in transactional use by the government:

“Trump probably wants the government to use stablecoins for everything, like paying for housing, Social Security, and taxes. And which coin do you think Trump would use instead of the dollar? His own, of course.” Republican Congressman French Hill, who chairs the committee, also expressed concern regarding stablecoin regulation and perceived conflicts of interest.

Why Is WLFI’s Portfolio Underperforming?

Coin E Tech – Latest News on Crypto Several factors could explain WLFI’s struggling crypto investments:

Market Downturn – The broader crypto market has been volatile, with Bitcoin and Ethereum experiencing price corrections.
Altcoin Underperformance – Many altcoins have struggled to maintain value, especially newer tokens like SEI and ONDO.
Poor Timing – WLFI may have bought into certain assets at peak prices before the market declined.
Regulatory Pressure – Increased scrutiny on crypto projects linked to political figures could affect investor confidence.

Will WLFI Recover Its Losses?

It is typical for crypto markets to swing widely, but here, even by the standards of the most pessimistic observers, WLFI’s losses raise questions about its investment strategy. Some analysts are betting on recovery, or at least partial recovery, of the portfolio with Bitcoin and Ethereum rallying. Still, in such a case, WLFI would suffer even deeper losses if the altcoin market continued to tumble.

Final Thoughts: A Risky Bet or Long-Term Play?

WLFI has suffered significant losses after a massive investment in crypto; being tied to Trump has been less of an asset as the losses have dwindled to USD 145.8 million. The success of the Trump-backed organization members has moved from moderately viable to uncertain.

Market recovery
Regulatory developments
Strategic portfolio adjustments

For now, WLFI’s investments remain a high-stakes gamble in an unpredictable crypto landscape.

Disclaimer

The information in this article is meant to be purely educational and informative and is not to be construed as advice on any financial matter. The market for cryptocurrencies is highly volatile and inherently risky. All readers should perform their research and consult a financial advisor before making any investment decisions.