Ether Surges Past $3,000 Amid ETF Approval Hopes and Upcoming Dencun Upgrade
Summary:
Ether (ETH) has surpassed $3,000 for the first time since April 2022, marking a 74% increase over the last year. This surge is potentially influenced by anticipation of the U.S. SEC approving a spot Ethereum ETF, and the upcoming Dencun upgrade for the Ethereum network. The upgrade is expected to speed up transactions and reduce costs, contributing to further interest in Ethereum's futures market. Despite regulatory delays, Bloomberg predicts a 70% chance of Ethereum ETF approval, highlighting a positive outlook for the cryptocurrency.
Ether (ETH), the digital currency associated with the Ethereum blockchain network, has eclipsed the $3,000 mark for the first time since April of the previous year. From an initial value of $2,881 on February 19, Ether's price has risen by over 4% in a single day and a staggering 74% in one year, reaching a high for the current year on Binance, as per data furnished by CoinMarketCap.
This increase in Ether's value arrives as the cryptocurrency market eagerly anticipates the potential green signal for a spot Ethereum exchange-traded fund (ETF) from the U.S. SEC (Securities and Exchange Commission), alongside the integration of the EIP-4844 through the impending Dencun upgrade.
Projections from Polymarket put the probability of a spot Ethereum ETF being approved by May end at 45%. Bernstein, a prominent wealth management firm, posited recently that Ether could be the solitary alternative cryptocurrency (altcoin) to clinch an ETF spot in the U.S. Analysts of the firm, Gautam Chhugani and Mahika Sapra, noted on February 19 that Ethereum's suitability for mainstream institutional acceptance is bolstered by its environment-friendly model, staking yield dynamics, and the capacity to create innovative financial markets.
Conversely, Eric Balchunas from Bloomberg presents a 70% chance of the Ethereum ETF's approval, casting a positive outlook for Ethereum ETFs despite regulatory stalls.
Ether last traded over $3,000 around 22 months prior, on May 4, 2022, reaching a high of $2,966 before plummeting to $883 in June 2022 amidst a prolonged period of bearish sentiment.
The recent surge in Ether's value could also be ascribed to the close-at-hand Dencun upgrade for the network. Slated for March 13, the Dencun upgrade is expected to introduce several Ethereum Improvement Proposals (EIPs), including EIP-4844, facilitating proto-danksharding. This upgrade simplifies transactions by off-chain data storage, thus speeding up transactions and reducing their costs.
Data from Coinglass indicates a rise in the open interest (OI) in Ethereum's futures market, peaking at a remarkable $10.19 billion - a testament to the current fluctuations in ETH's value.
Many participants in the market anticipate that this wave of bullish price action will persist amidst possible news concerning the approval of a spot Ethereum ETF and potential movements in the broader crypto market.
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Published At
2/20/2024 4:58:17 PM
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