Ether’s price surpassed the $3,000 mark on February 20, marking the first time since April 2022 that it reached this level. In the past 24 hours, Ether has surged over 4%, and over the past year, it has seen a remarkable increase of 74%. At 13:45 UTC, it hit a year-to-date high at $3,000.97 on Binance, according to CoinMarketCap data.
The rise in Ether’s price coincides with the anticipation of the potential approval of a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission, as well as the implementation of Ethereum Improvement Proposal (EIP) 4844 through the Dencun upgrade. Polymarket’s current odds suggest a 45% chance of a spot Ether ETF approval by May 31.
Wealth management firm Bernstein has suggested that ETH may be the only other cryptocurrency to secure an ETF spot in the US. Analysts Gautam Chhugani and Mahika Sapra noted that Ethereum’s staking yield dynamics, environmentally friendly design, and institutional utility make it well-positioned for mainstream institutional adoption.
Bloomberg’s Eric Balchunas predicts a 70% chance of approval, indicating a positive outlook for Ether ETFs despite regulatory delays. The last time Ether traded above $3,000 was almost 22 months ago, in May 2022, before entering an extended bear market.
The recent performance of ETH may also be attributed to the highly anticipated Dencun upgrade. Scheduled for March 13, the upgrade is expected to implement several EIPs, including EIP-4844, which introduces proto-danksharding. This upgrade simplifies the transaction process by storing some data off the blockchain, resulting in faster transactions and reduced costs.
Data from CoinGlass shows a record-breaking $10.19 billion open interest (OI) in the Ether futures market, confirming the current volatility in ETH’s price. Market participants anticipate that this bullish price action will continue with any news related to a spot Ether ETF approval and potential developments in the broader crypto market.
Please note that this article does not provide investment advice or recommendations. Each investment and trading decision carries its own risks, and readers should conduct their own research before making any decisions.