In an interesting move, Ethereum (ETH) has hit a two-year peak, making significant waves as Bitcoin (BTC) shows signs of a slowdown. The Ethereum surge is sparking speculation about the possibility of a new altcoin season.
ETH reached an impressive $3,014, showcasing strength in the market. While it currently stands just below $3,000 at $2,937, Ethereum’s market cap remains a robust $358.96 billion. In the last week, it climbed 13.1% against the U.S. dollar, with a remarkable 28% surge over the past two weeks. Ethereum now holds 17.9% of the $2 trillion crypto market.
What’s next? Let’s find out.
Insights into the Climb: Bulls Eyeing $3,000
Negentropic, Glassnode’s co-founder, shares insights into Ethereum’s journey to the significant $3,000 milestone. With a notable 3.35% surge on Sunday, Ethereum edges closer to the target, fueled by optimism around Ethereum-based exchange-traded funds (ETFs). The potential for Ethereum to retake $3,000 hinges on ETH bulls rallying, with projections reaching as high as $3,004.
Analysts are closely watching Bitcoin ETFs and filings from major players like ARK, VanEck, and Franklin Templeton for ETH ETFs. These developments create anticipation, especially after Ethereum surpassed Sunday’s high. ETF applications are seen as crucial for Ethereum’s strategic positioning in the market.
Spot Ethereum ETF: A Potential Game-Changer?
The current bullish trend centers around the potential approval of a spot Ethereum ETF. Financial experts believe approval could integrate Ethereum further into the mainstream financial system, potentially increasing its value and appeal to investors. The SEC’s decision is awaited, with the next deadline in May.
Also Read: SEC’s Gary Gensler: Bitcoin ETF Nod Doesn’t Guarantee Ethereum ETF Approval
Mixed Predictions and Future Outlook
Dave LaValle, head of ETFs at Grayscale, projects a 50% likelihood of SEC approval for Ethereum ETFs, slightly lower than Bloomberg Analyst Eric Balchunas’ predictions in November 2023. Meanwhile, Bloomberg Intelligence’s ETF specialist, James Seyffart, remains skeptical, casting doubt on the immediate launch of an Ethereum ETF.
Dencun Upgrade
Adding fuel to Ethereum’s surge is the anticipation surrounding the upcoming Dencun upgrade, scheduled for mid-March. This upgrade promises significant improvements to the Ethereum network, including proto-dank sharding and fee reductions.
This Might Interest You: Here’s Why Ethereum, Along With Some Altcoins, May Outperform Bitcoin By the End of Q1 2024
The goal is to enhance network performance, decrease transaction costs, and improve interoperability across Ethereum’s ecosystem.
Source: https://coinpedia.org/news/ethereum-eth-surges-to-two-year-high-amidst-speculation-of-may-etf-approval/