Ether's Price Climbs Amid Bitcoin's Rally and Anticipation for the Dencun Upgrade
Summary:
Ether (ETH) has seen an increase in its price, with a 0.27% rise in the last day, reaching a trading level of $3,257. The price of ETH has increased 11% over the last week, reflecting a similar rise in Bitcoin (BTC). Reasons for the increase in price include Bitcoin's rise to a two-year high of $57,000 and the impending Dencun upgrade. Investor sentiment has also been positively impacted, with the Crypto Fear and Greed index reaching a two-week high, indicating intense greed among investors. Additionally, Ether reached a record high in futures open interest on Binance, with an increase to $10.54 billion due to a high demand for Ether leverage. The Dencun upgrade, planned for March, aims to reduce transaction costs and improve the scalability of the Ethereum network.
Today, Ether (ETH) enjoys a 0.27% price increase in the last 24 hours, trading at $3,257. Its price over the past week has surged by 11%, tracing the 16.3% rise in Bitcoin’s (BTC) value for the same time. Bitcoin’s success in hitting a two-year high of $57,000 and anticipation for the Dencun upgrade helps explain why Ether's price continues to surge. ETH/USD 1 day chart. Source: Tradingview
Bitcoin surpassed the $57,000 threshold on February 27 for the first time since November 2021, positively impacting Ether investor sentiment, given the price correlation between the two largest cryptocurrencies on the planet.
An upward trend in Ether has driven the Crypto Fear and Greed index to a two-week peak of 79, indicating high levels of greed among investors. By contrast, the previous month saw the index average 54, a neutral marker. The Crypto Fear & Greed index is an effective barometer for cryptocurrency market sentiments.
Also boosting investor confidence, on February 26, spot Bitcoin exchange-traded funds in the US recorded a historical high of $2.4 billion in daily trade volume, according to Bloomberg's senior ETF analyst, Eric Balchunas.
Bitcoin’s present pre-halving rally is making strong impressions on the investment flocking into Ether, predicted to place an emphasis on smaller altcoins as weeks progress, as per pseudonymous crypto analyst Rekt Capital's February 27 post on X (previously known as Twitter).
Ether futures open interest on Binance has recently hit a record high. Binance, the batch's top cryptocurrency exchange, recorded an all-time high of $3.88 billion for Ether futures open interest on February 26, figures from Coinglass show. The past peak of $3.31 billion in Ether open interest on Binance was achieved on November 3, 2021, with Ether dominance at over $4,400.
Overall demand for Ether leverage has prompted Ether futures' open interest to climb to $10.54 billion. Ethereum’s open interest recorded its peak of over $11 billion in November 2021, just before Ether's 55% tumble from its all-time $4,891 high.
On top of Bitcoin's performance, expectations for the upcoming Dencun upgrade also explain Ether's price jump. The upgrade, set for March 13, intends to cut transaction expenses and amplify the Ethereum network's scalability, through the introduction of proto-danksharding, a system looking to temporarily deliver transaction data in a cheaper “compressed” form. According to a February 23 report by Grayscale Research, the Dencun upgrade is a primary driver for Ether’s positive price performance.
This article is devoid of any investment advice or recommendation. Trading and investing come with their risks, so readers are urged to engage in their research before any decision-making.
Published At
2/27/2024 6:30:03 PM
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