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Ethereum Surges Past $3,000, Marking a 22-Month High

Ethereum's Resurgence: A Confluence of Market Dynamics and Anticipation for Key Upgrades.

by Isaac lane
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In a significant development, the price of Ethereum (ETH) has crossed the $3,000 threshold, a level not witnessed in over 22 months. This surge comes as the cryptocurrency climbed from $2,881 on February 19, registering a more than 4% increase in the last 24 hours and an impressive 74% surge over the past 12 months.

ETH/USD daily chart. Source: TradingView

Factors Driving Ether’s Performance

Ethereum’s remarkable price-performance aligns with the anticipation of potential approval for a spot Ethereum exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). The market is also looking forward to the implementation of the EIP-4844 through the upcoming Dencun upgrade.

Speculation on Spot Ethereum ETF Approval

Current odds from Polymarket indicate a 45% likelihood of spot ETH approval by May 31. Wealth management firm Bernstein suggests that it could be the sole cryptocurrency to secure an ETF spot in the United States, citing its staking yield dynamics, environmentally friendly design, and institutional utility for building new financial markets.

Bloomberg‘s Eric Balchunas forecasts a 70% chance of approval for Ethereum ETFs, providing a positive outlook despite regulatory delays. Analysts Gautam Chhugani and Mahika Sapra from Bernstein emphasized Ethereum’s positioning for mainstream institutional adoption.

Dencun Upgrade and Future Prospects

The last time Ether surpassed $3,000 was almost 22 months ago, on May 4, 2022. ETH’s recent surge may also be linked to the upcoming Dencun upgrade scheduled for March 13, implementing Ether Improvement Proposals (EIPs), including EIP-4844 introducing proto-dank sharding. This upgrade is expected to simplify transactions, increase speed, and reduce costs by storing some data off the blockchain.


Ethereum futures open interest. Source: Coinglass

Market participants anticipate continued bullish momentum, especially with increasing open interest in the Ethereum futures market, reaching a record $10.19 billion according to Coinglass data. The heightened volatility in ETH price is validated by this surge in open interest.

As Ethereum continues its upward trajectory, the crypto community eagerly awaits any news related to the potential approval of a spot Ethereum ETF and anticipates broader market movements in response.

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