Why ETH Q1 Hype Cycle Could Peak Above $5,000?

Ethereum price prediction: ETH is slowly closing in on the crucial $4,000 level after Bitcoin price topped out at $68,537 on Monday, March 4. Select altcoins, especially meme coins like Shiba Inu (SHIB), Dogecoin (DOGE), Pepe, and more graced the market with triple-digit gains, accentuating the bullish theory.

The second-largest cryptocurrency, trading above $4,000 during US business hours, is only 22.83% from its record high of $4,891. Ether boasts a 7.2% increase in 24 hours on top of a 16% surge in a week and an impressive 64% in a month.

According to CoinMarketCap, ETH is experiencing a staggering accrual in trading volume to $33 billion, with the market cap rising to $456 billion. This significantly underscores the strong fundamental factors backing the current rally, including the Dencun upgrade on March 13.

Ethereum Price Prediction: ETH Goes Boom Ahead of Dencun Upgrade

Ethereum seems poised to break above $4,000 anytime from now. The unstoppable run is mainly buoyed by positive sentiment in the market as Bitcoin price rallies closing in on the all-time high, the anticipation for a spot ETF, and the upcoming Dencun upgrade.

The Ethereum Dencun upgrade will take place on March 13 following three successful testnets launches in the past months. This upgrade promises a lot of goodies for the Ethereum ecosystem such as lowering transaction fees on layer 2 protocols.

Network congestion will also be addressed with the block size increasing to 25 MB from 12.5 MB. With proto-danksharding, Ethereum will finally address scalability issues.

The coming days before the upgrade are expected to shape the outlook of Ethereum price, compelling investors to position themselves by buying ETH.

Growing optimism for a spot Ethereum ETF is another factor driving the price. The approval of Bitcoin ETFs saw investors, stakeholders and potential operators of the products shift their attention to Ethereum.

The Securities and Exchange Commission (SEC) is expected to consider greenlighting spot ETH ETFs, further fuelling interest in the cryptocurrency.

Recommended: 4 GameFi Rising Altcoins On The Move As Bitcoin Flirts With ATH

Assessing ETH Price Technical Outlook For March

After stepping above $3,800, Ethereum price teeters at $3,803. In addition to the bullish sentiment across the market, the uptick in price has been reinforced by the Moving Average Convergence Divergence (MACD) indicator as it rises above the neutral area.

Key bull market indicators like the 20-week Exponential Moving Average (EMA), the 50-week EMA, and the 200-week EMA are still catching up with the uptrend, signaling that the rally is far from over.

Traders would be interested in the way ETH price reacts to resistance at $3,800 over the coming sessions. A daily close above this level could trigger a larger breakout as bulls target highs above $4,000.

The expected increase in buying pressure due to the Dencun upgrade will also boost the price towards the all-time high. Hence, the likelihood of Ethereum soaring above $5,000 in quarter 1.

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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.