Hosting and Size of Blog

I’m having problems with hosting my blog and wonder if people who know more about the technical end can help out.

My blog is hosted by Midphase/AN Hosting on a shared hosting account. They are now trying to get me to move to a VPS plan which costs substantially more and I wonder if this is really necessary considering the size of my blog. This would change from about $7 a month to about $70 per month.

They are saying that the blog is using too many resources for a shared hosting account. My blog has around 2000 visits a day on busy days with around 3000 page loads, and occasionally jumps higher if I get a link from a major site. This isn’t a tiny blog, but is also far from the size of top blogs. (I’m wondering if the problem might be resources used by plugins as opposed to traffic and have disabled a number of plugins).

Anyone know if this makes sense that my blog is too big for the web hosts which charge in the $7/month neighborhood? I’m wondering if I should just switch to a competitor in the same price range, or if my blog really is big enough that I need a more expensive plan.

Anyone have any recommendations for hosts if I do have to change?