Ethereum Surpasses US$3,000 Mark with ETF and Dencun update boost appreciation

Cryptocurrency market witnessed a historic moment recently, with Ethereum (ETH) breaking the $3,000 barrier for the first time since April 2022. This milestone was reached on February 20, marking a significant turnaround in Ethereum’s market value.

The day before, Ether was priced at $2,900 and has seen an increase of over 4% in the last 24 hours, culminating in an impressive 15% gain over the last 7 days. The price reached a peak of US$3,005 on Binance, according to data shown. At the time of publication, the price of ETH was quoted at US$2,989.49, up 0.3% in the last 24 hours.

This advancement comes in a context where the market eagerly awaits key regulatory developments, such as the possible approval of a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission. Additionally, anticipation surrounding the implementation of Ethereum Enhancement Proposal (EIP) 4844, part of the Dencun update, also fuels investor optimism. Betting platform Polymarket reflects this sentiment, indicating a 45% probability for the approval of the spot Ether ETF by the end of May.

Bernstein analysts see Ethereum as a cryptocurrency with unique potential to gain a prominent position in the US ETF market. The analysis highlights Ethereum’s characteristics, including staking yield dynamics, its environmentally friendly design, and institutional utility. “Ethereum is well positioned for mainstream institutional adoption,” highlight analysts Gautam Chhugani and Mahika Sapra.

Bloomberg’s Eric Balchunas optimistically projects a 70% chance of ETF approval despite regulatory delays. This expectation comes on the heels of a challenging period for Ether, which saw its value plummet to $883 in June 2022, after trading above $3,000 almost 22 months earlier.

Ethereum’s recovery is also linked to the network’s Dencun upgrade, expected in March. This update promises to implement significant improvements, including EIP-4844, which aims to optimize the transaction process and reduce costs.

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The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.