Ethereum Price Has Crossed 4,000 mark: Will ETH Hit All-time High?

Bitcoin crossed the $70,000 mark to hit an all-time high of  $72,242.51 before retracing to its current price of $71,947. As BTC soared, Ethereum price also tagged along crossing the $4,000 mark, having grown by 60% in the past 30 days. The leading altcoin by capitalization achieved its all-time high of $4,891.70 on Nov 16, 2021. Now the price of ETH is only 18.03% away from this peak, will it meet the expectations of optimistic investors and enthusiasts and achieve this milestone?

Ethereum Price Market Performance

Ethereum price is trading at $4,009 having decreased by 0.6% in the past day. However, it has experienced increasing investor activity demonstrated by the 2.18% increase in trading volume to reach $23.9 billion in the last 24 hours. Its market cap of $481.29 has positioned it on CoinMarketCap as the 2nd cryptocurrency in the market, with a circulating price of 120,093,479 ETH. The coin value has grown by 32% since it crossed the $3,000 mark on March 20, 2024, which is only 20 days ago. 

Factors That Could Drive Ethereum Prices Higher

There are various factors that would possibly propel Bitcoin price towards its all-time high.

1. Ethereum Dencun Upgrade

The anticipation surrounding the upcoming Ethereum Dencun upgrade and the introduction of “proto-danksharding” has sparked a wave of excitement among investors and developers within the platform’s ecosystem. Scheduled to go live on March 13, this upgrade promises to  reduce congestion and transaction fees significantly for Layer 2 platforms like Arbitrum and Optimism. The upgrade tackles major scalability hurdles making Ethereum more accessible to both users and developers. 

Additionally, developments in Ethereum’s protocol are anticipated, where proto-danksharding will lead the way to full danksharding in future upgrades thereby enhancing its scalability potential even more. Secondly, the upgrade enhances Ethereum’s security through measures such as adding new EVM opcodes while phasing out obsolete ones making it more attractive and reliable. Through infrastructure and capability enhancements like Dencun, Ethereum is likely to attract greater investor interest, fueling a bullish sentiment that could propel Ethereum to new all-time highs.

2. ETH Burning and Staking Initiatives

Dune’s data indicates that the amount of ETH locked in Ethereum’s proof-of-stake layer protocol is steadily decreasing the altcoin’s circulating supply. Presently, over 31.68 million ETH, worth $126 billion, is staked on the Beacon Chain. This accounts for approximately 26.4% of Ethereum’s circulating supply being staked and unavailable in the market, with more than 990,000 validators actively engaged.

In addition, the availability of liquid staking options like Lido has simplified the process of staking on the Ethereum network. Lido alone accounts for 31% of the overall staked Ether. 

Furthermore, recent data from ultrasound money reveals a substantial amount of ETH being burned in the last seven days, resulting in a reduction of Ether’s circulating supply by 49,931 ETH, equivalent to approximately $200 million. This burning mechanism serves to decrease the selling pressure on the price by reducing the available supply of ETH in circulation. Ethereum’s scarcity is amplified, driving up demand and potentially propelling its price to new heights. 

3. London Stock Exchange (LSE) plans

The London Stock Exchange (LSE) has announced that it will accept  Bitcoins and Ethereum applications for Crypto exchange-traded notes (ETNs). ETNs are investment products that track Bitcoin and Ethereum’s value, allowing investors to trade similar to traditional stocks during regular trading hours. 

The LSE has set up criteria for the ETNs including, the need to be physically backed and non-leveraged, meaning they have to have real assets backing them up, and they can’t involve borrowing to amplify returns. Plus, they must be backed by Ethereum and Bitcoin and have a publicly available market price or value measure.

Since Financial Conduct Authority (FCA) is ready to support the creation of a market segment for these crypto-backed ETNs, the LSE’s move opens up a whole new avenue for investors to acquire exposure to Ethereum through regulated channels and sleep have openly complied due to legal concerns it may attract significant attention from institutional investors and traditional financial players Hesitate to enter the crypto-space

This move by the London Stock Exchange adds legitimacy and accessibility to Ethereum as an economic asset, increasing demand and potentially increasing its value in the long term.

4. Ethereum exchange-traded funds (ETFs)

Another force driving the Ethereum price to soar is the upcoming possibility of the United States Securities and Exchange Commission (SEC) approving spot Ethereum exchange-traded funds (ETFs). Unlike Bitcoin ETFs, which faced a delay, spot Ethereum ETFs appear to be on a fast track to obtaining regulatory approval.

The successful deployment of spot Bitcoin ETFs since January 11 has set a precedent, indicating that a similar Ether-based product could attract substantial capital to ETH. This accelerated approval process for Ether ETFs has garnered significant attention from institutional investors, who may now look to diversify their holdings beyond Bitcoin. This shift in focus towards Ether ETFs could stabilize liquidity at higher price points and foster long-term price surges, further solidifying Ethereum’s position as a cornerstone of the cryptocurrency market.

Technical Analysis of ETH

The 50-day exponential moving average (EMA) suggests a robust buying sentiment, pointing towards a favorable trend in the short to medium run. Likewise, the 200-day EMA and SMA are both displaying an upward trend, signaling a positive long-term outlook for Ethereum’s price trajectory. Meanwhile MACD levels indicate the possibility of Ethereum price appreciation, traders should be wary of overbought conditions with the RSI (14) indicating 81.8.

Support amounts: $2546.6 and $1751.5

Resistance: $3829.2 and $4316.7

The attainment of $4,800 by Ethereum hinges upon a confluence of technical aspects, market dynamics, and overall market circumstances. In order to make prudent investment choices within the cryptocurrency market, traders and investors must diligently engage in comprehensive research, evaluate various sources of information, and effectively mitigate risks.