Ethereum Price Finds Support Above $2,700, Following Earlier Surge to $2,900

Key Points

• ETH trades above $2,700, following an earlier surge above $2,900, fueled by Trump Jr. support.
• ETH will increase the gas limit for the first time since PoS migration.

Earlier today, Ethereum reached prices above $2,900, following a price rally that debuted yesterday on Eric Trump’s support via X. However, ETH’s rally cooled off and the coin is currently trading around $2,700, still up by over 4% in the past 24 hours.

ETH Price Stabilized Above $2,700

At the moment of writing this article, ETH is trading at around $2,700, up by over 4.7% in the past 24 hours.

ETH price in USD today

On January 3rd, ETH dropped to levels of $2,300, after ETH active addresses hit a YTD low, signaling reduced network activity and lower transaction volumes on February 2, according to Glassnode data.

Glassnode data

ETH debuted a price surge yesterday, fueled by Donald Trump’s son, Eric Trump’s support via X.

Yesterday, Trump Jr. shared a post on social media, saying that in his opinion it’s a great time to add ETH to portfolios, telling followers that they can thank him later.

Eric Trump via X

However, interestingly, Trump Jr. edited his message earlier today, removing the “you can thank me later” part:

Eric Trump via X

Earlier today, ETH surged above $2,900, before cooling off to current price levels. The price rally was fueled by Trump’s Jr’s remarks, but also by continued inflows in ETH ETFs. On February 3rd, ETH ETFs recorded their third day of continued inflows at $83.54 million, according to data from SoSoValue .

According to recent reports, Ethereum will increase the gas limit for the first time since the PoS migration.

Ethereum Increases Gas Limit

Recent reports revealed that ETH reached the consensus needed to increase the network’s gas limit, with 50% of the validators signaling for this change to help improve the network’s scalability.

This is a crucial parameter that dictates the network’s transaction capacity. It was previously capped at 30 million, and now, the gas limit has increased above the 31 million mark. This is the first time since such a change has been implemented under ETH’s PoS consensus mechanism.

It’s also worth noting that the last adjustment took place in 2021 when the gas limit doubled from 15 million to 30 million gas units.

On Ethereum, gas is fundamental to measuring the computational effort needed to execute transactions/smart contracts.

The gas limit is the maximum amount of gas that all transactions can consume within a single block.

Official notes show that the average gas limit in 24 hours was above 31,9 million and it’s expected to adjust to a maximum capacity of 36 million gas units.

ETH gas limit

Such a gas limit increase was necessary to scale the network more, following the latest Dencun upgrade that brought scalability improvements.