Ethereum Price Soars Past $4,000 Amidst Bitcoin Surge, March Rally Speculation Peaks
In Brief
Ethereum price has exceeded over $4K following the recent surge in Bitcoin price, expected rise further by March end.
Price of the second-largest cryptocurrency by market capitalization, Ethereum (ETH), has surpassed $4,000 and is currently trading at $4,004, marking an intraday increase of 2.98% following the recent surge in Bitcoin.
The cryptocurrency has experienced an upward trend over the last week, coinciding with Bitcoin reaching a new all-time high. Based on data from CoinMarketCap, it has seen an increase of nearly 13.6% in the past seven days. Furthermore, in the last 30 days, ETH has demonstrated stronger performance than Bitcoin, experiencing a 67% increase, whereas Bitcoin saw a 57% rally.
However, Ethereum’s all-time high remains at $4,878, recorded as of January 5, 2022.
Ethereum Price Surge Anticipated for March
Several factors contribute to the increase in Ethereum’s price and its ongoing growth. One notable factor is the upcoming Dencun upgrade scheduled for March 13, which is set to introduce proto-danksharding to the Ethereum blockchain. This upgrade will allow rollups to incorporate “blobs” of data on a beacon node to reduce transaction costs on Layer 2 networks. This cost-effectiveness is expected to enhance activity and potentially attract mainstream, mass consumer demand for Ethereum.
Analysts also highlight that March is expected to witness a significant increase in Ethereum’s price, attributed to the approaching regulatory decision deadline for spot Ethereum exchange-traded funds (ETFs). Various asset management companies, including Franklin Templeton, Ark 21Shares, VanEck, and Grayscale, have submitted applications for spot Ethereum ETFs, awaiting approval from the United States Securities and Exchange Commission (SEC).
While the likelihood of approval remains uncertain, the potential for such approval adds anticipation to the Ethereum market. If approved, it could enhance Ethereum’s appeal, particularly among more conservative institutional investors.
Another factor contributing to the potential for higher prices for ETH is the deflationary supply of ETH, coupled with the restaking surge spearheaded by EigenLayer and the growing decentralized finance (DeFi) activity.
According to cryptocurrency index fund manager Bitwise, Ethereum has the potential to double in price in 2024. Juan Leon, a cryptocurrency research analyst at Bitwise, highlighted that Ethereum price could surpass $8,000-10,000 this year, and the majority of positive sentiment is likely to occur in the weeks and months following the Dencun upgrade as the effects of the changes take place.
The Ethereum price trajectory, shaped by various factors, positions it for a potentially transformative period in the coming weeks and months.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
