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Ethereum sees meteoric rise, surges past the $4k mark

Ethereum sees meteoric rise, surges past the $4k mark

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TL;DR

  • Ethereum broke past the $4,000 mark for the first time since December 2021, reaching a 27-month high of $4,003 on Bitstamp.
  • The surge was fueled by anticipation of the Dencun update and potential approval of a spot Ether ETF by the SEC.
  • The Dencun upgrade, set for March 13, includes significant improvements like proto-danksharding, aimed at speeding up transactions and reducing costs.

Ethereum, the cryptocurrency second only to Bitcoin in terms of market cap, recently smashed through the $4,000 barrier, a price point it hadn’t seen since December 2021. Starting its climb from $3,873 on March 8, Ethereum experienced a more than 4% surge in a mere 24 hours, culminating in a 74% increase since the start of the year. This jump propelled Ethereum to a 27-month high of $4,003 on Bitstamp, showcasing its impressive momentum.

This upward trajectory in Ethereum’s price is closely tied to two major developments: the anticipated Dencun update to the Ethereum network and speculation around the approval of a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC). On March 8, Ethereum resumed its upward movement, distinguishing itself even as other top cryptocurrencies indicated bullish sentiment and Bitcoin reclaimed the $68,000 mark.

The Dencun upgrade, expected to be the most significant overhaul since the Merge, is particularly noteworthy. Scheduled to go live on March 13, this upgrade aims to implement several Ethereum Improvement Proposals (EIPs), with EIP-4844 introducing “proto-danksharding.” This innovative feature aims to streamline the transaction process by storing certain data off the blockchain, which could speed up transactions and reduce costs for layer-2 networks reliant on Ethereum.

Market optimism also swells with the anticipation that the SEC might approve one of the several spot Ether ETF applications currently pending. Despite the SEC’s decision to delay its verdict on applications from major players like BlackRock and Fidelity, the crypto community remains hopeful. A unified decision on all spot Ether ETF applications is expected, akin to the approach taken with Bitcoin ETFs earlier in January. The deadline for this decision is set for May 23, with many market watchers eyeing this date with keen interest.

James Seyffart, a Bloomberg ETF analyst, has expressed confidence that the SEC will process Ether ETF applications more swiftly than it did with those for Bitcoin. Seyffart’s commentary underscores the importance of May 23 as a pivotal date for Ether’s ETF journey.

The introduction of a spot Ether ETF is anticipated to mirror the success of its Bitcoin counterparts, potentially inviting more capital into Ethereum. Institutional investors, in particular, may increase their exposure to Ether, especially as the spotlight shifts from Bitcoin’s recent all-time highs. Siddharth Lalwani, co-founder and CEO of Range Protocol, voiced a similar sentiment, suggesting that the market liquidity for Ethereum is expected to consolidate at higher levels, possibly leading to significant price rallies.

Despite a minor pullback after reaching the $4,000 mark, Ethereum’s price remained robust, trading at $3,933 with a market capitalization of $472 billion. The crypto analyst community, represented by figures like CrediBULL Crypto, is buzzing with anticipation for Ethereum’s next big leap. This sentiment is fueled by Ethereum’s strong performance relative to Bitcoin, with Ethereum posting a 15% gain over Bitcoin’s 10% in the same timeframe.

The forthcoming Dencun upgrade is a major talking point within the crypto community, anticipated to bring substantial improvements to the Ethereum network. This upgrade, coupled with the regulatory developments around spot Ether ETF applications, is creating a bullish atmosphere for Ethereum.

Moreover, Ethereum’s network fees have seen a significant uptick, reaching $193 million this week, the highest since May 2022. This surge in on-chain activity, driven largely by speculative interest in meme coins, indicates a heightened level of engagement with the Ethereum blockchain.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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