Ethereum, the second-largest cryptocurrency by market capitalization, recently shattered the $4,000 mark, reaching a price point unseen since December 2021. Starting its ascent from $3,873 on March 8, Ethereum witnessed a more than 4% increase within just 24 hours, reaching its peak with a 74% surge since the beginning of the year. This leap propelled Ethereum to its highest level in 27 months at $4,003 on Bitstamp, showcasing impressive momentum.
This upward trajectory in Ethereum’s price is closely tied to two key developments: the anticipated Ethereum network upgrade, DenCun, and speculation surrounding the approval of an Ethereum Exchange Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC). On March 8, Ethereum resumed its upward movement, distinguishing itself even as other cryptocurrencies signaled bullish sentiments and Bitcoin reclaimed the $68,000 mark.
DenCun’s upgrade is expected to be a pivotal improvement since the merger, especially noteworthy for its scheduled release on March 13. This upgrade aims to implement various Ethereum Improvement Proposals (EIPs), with the introduction of EIP-4844, “proto-danksharding.” This innovative feature aims to streamline transaction processes by storing specific data off the blockchain, potentially accelerating transactions and reducing costs for Ethereum-layer two networks.
Market optimism is also expanding with expectations of the SEC approving one of the numerous pending Ethereum ETF applications. Despite the SEC’s decision to delay judgments on applications from major players like BlackRock and Fidelity, the cryptocurrency community remains optimistic. A unified decision on all pending Ether ETF applications, following the approach taken with Bitcoin ETFs in early January, is anticipated by the final decision date on May 23, a date closely watched by market observers.
James Sevart, an analyst at Bloomberg, expressed confidence that the SEC will address ETF applications faster than it did with Bitcoin. Sevart’s comment underscores the significance of May 23 as a pivotal date in the ETF journey.
The introduction of an Ether ETF is expected to mirror the success of its Bitcoin counterparts, potentially attracting more capital into Ethereum. Institutional investors, in particular, might increase their exposure to Ethereum, especially with the spotlight shifting from Bitcoin’s recent all-time highs. Siddharth Lalwani, Co-founder and CEO of Range Protocol, shares a similar sentiment, noting that market liquidity for Ethereum is expected to solidify at higher levels, leading to substantial price hikes.
Despite a minor pullback after reaching the $4,000 mark, Ethereum’s price remains robust, trading at $3,933 with a market capitalization of $472 billion. The cryptocurrency analyst community, represented by figures like CrediBULL Crypto, eagerly anticipates Ethereum’s next significant leap. This sentiment is fueled by Ethereum’s strong performance compared to Bitcoin, with Ethereum registering gains of 15% versus Bitcoin’s 10% within the same timeframe.
Read more Massive $102 Million Ethereum Transfer to Binance Raises Speculation Amid Market Upsurge
The upcoming DenCun upgrade is a major point of discussion within the cryptocurrency community, expected to bring substantial improvements to the Ethereum network. This upgrade, along with regulatory developments around Ether ETF applications, creates a bullish atmosphere for Ethereum.
Furthermore, Ethereum’s network fees have seen a significant increase, reaching $193 million this week, the highest level since May 2022. This surge in on-chain activity, largely driven by increased interest in meme coins, indicates a high level of interaction with the Ethereum blockchain.
Important Notice: Disclaimer Regarding Financial Advice
The information presented in this article is intended solely for informational purposes and should not be considered as financial advice. Coinshiba.online disclaims any responsibility for investment decisions made by individuals relying on the information provided herein. It is highly recommended to consult with a qualified professional or financial advisor before making any investment decisions. Your financial well-being is crucial, and seeking expert guidance ensures that your investment choices align with your individual financial goals and risk tolerance.
