Share this article
Ether Price Hits New Record High as Analysts Anticipate Supply Drop
Analysts say ether will become a deflationary asset after the impending EIP 1559 upgrade.
Updated Sep 14, 2021, 12:45 p.m. Published Apr 22, 2021, 11:48 a.m.
Ether (ETH) rallied to a new lifetime high on Thursday on speculation an impending blockchain upgrade might result in a drop in supply.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The native cryptocurrency of Ethereum's blockchain rose to a record high of $2,564 during European trading hours, toppling the previous peak price of $2,546 reached on April 16, according to CoinDesk 20 data.
"Ethereum's net annual issuance will drop substantially following the Phase 1.5 ETH 1 to ETH 2 merger," Messari's research Wilson Withum tweeted.
With the upcoming EIP 1559 upgrade, ether will "become a deflationary asset," Nick Spanos, co-founder of Zap Protocol, told CoinDesk. "This feature will reduce the coin supply and have a corresponding effect on the price, creating an attraction point for more buyers."
Ether has been on a tear of late, outperforming bitcoin (BTC) by a wide margin. Ether has gained 35% this month while bitcoin is down about 8%.
Analysts studying ether-bitcoin (ETH/BTC) chart patterns say ether's outperformance could continue in the near term.
"ETH/BTC is getting a lot of attention as it broke above its long-term resistance of 0.04," Pankaj Balani, co-founder and CEO of the Singapore-based Delta Exchange, said. "We might see ETH-BTC push through 0.10. Expect sharp moves though, first to 0.06 in the coming weeks and subsequently to 0.1."
ETH/BTC is currently trading at 0.046 on Binance, according to data provided by TradingView.
Also read: Ethereum’s ‘EIP 1559’ Fee Market Overhaul Greenlit for July
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Fidelity's Jurrien Timmer: Expect lame 2026 as four-year bitcoin cycle appears intact
The director of global macro at the asset management giant remains a secular bull on bitcoin, but isn't optimistic about the next year.
What to know:
- A number of notable market analysts of late have dismissed the idea of bitcoin's four-year cycle and the nearly certain bear market that might imply.
- Fidelity's Jurrien Timmer, however, says the action so far this time around lines up about perfectly with past four-year cycles and the current bearish action should last deep into 2026.
Top Stories
