Ethereum is experiencing a bullish run, climbing nearly 4% in a single day and boasting a 28% increase since the start of February.
Ethereum is experiencing a bullish run, climbing nearly 4% in a single day and boasting a 28% increase since the start of February. Analysts predict this upward trend could continue, driven by a confluence of positive factors, such as the highly anticipated Dencun upgrade. Scheduled for release within a month, this upgrade will introduce "proto-danksharding," a technology that reduces data availability costs and paves the way for faster and cheaper transactions.
Adding to the excitement is the growing speculation that the US Securities and Exchange Commission (SEC) might finally approve a spot Ethereum ETF this year. The recent green light for several Bitcoin ETFs has fueled hope that Ethereum will follow suit, potentially attracting significant investments and boosting the token's price.
Further bolstering the bullish sentiment is the increasing confidence among traders, evident in the rising open interest in Ethereum futures and options contracts. CryptoQuant, a leading on-chain analytics platform, highlights this trend but cautions against complacency, emphasizing the potential for sudden sell-offs.
Trading volume, a crucial indicator of market participation, is also picking up, although it hasn't quite reached the levels seen during the November 2021 bull run. Notably, major Bitcoin news, like the recent ETF approval, has triggered surges in Ethereum trading volume, suggesting its sensitivity to broader market developments.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
