Ethereum is one of the few large-cap cryptocurrencies in the green today. In the last 24 hours, Ethereum is up by 2.15%. As of 11:07 GMT+3, Ethereum was trading at $3094, holding firmly above the $3000 mark. Trading volumes have also risen by 5.77% in the last 24 hours to $13.33 billion.
This follows rising optimism that Ethereum’s upcoming series of news events could see it rally back to its all-time high of $4800 before the halving and possibly test $10,000 or more post-halving.
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Dencun Hard Fork Hype Builds Up
One of the big news around Ethereum that investors are watching keenly is the Dencun hard fork. This hard fork slated for March 13th is a big deal because it aims to solve the problem of transaction costs for Ethereum Layer 2s. By increasing efficiency in the L-2 space, Ethereum can quickly scale up to 100k TPS, competing well with its more centralized and less secure competitors.
@0xMantle has been consistently one of the cheapest ecosystem for TXs$ETH EIP-4844 upgrade will push L2 gas fees even lower
The lowered gas fees will reduce friction for micro transactions on-chain and chains would be able to pass on cost savings to users.
The low cost… pic.twitter.com/qSxp87NxIp
— Defi_Maestro ✺ (@Defi_Maestro) February 19, 2024
Ethereum ETFs Possibly Few Months Away
Besides the upcoming Dencun hard fork, investors are also keenly watching Ethereum because Ethereum ETFs could soon be approved. The SEC has a fixed date of May 23rd to approve or reject Ethereum ETFs. Many analysts are optimistic that the SEC could approve all Ethereum ETFs en masse, just like what happened with the Bitcoin ETFs.
The excitement around these ETFs stems from the potential for institutional money to flow into Ethereum in huge amounts once the ETFs are approved. At the moment, Ethereum is already one of the cryptocurrencies that institutional players are interested in. An ETF would give such market players an easier way to buy Ethereum, driving the demand.
Ethereum ETFs Perfect Timing
The market is also excited that the Ethereum ETFs will come shortly after the Bitcoin halving. The Bitcoin halving historically drives market hype, and this time is no different if the market so far is anything to go by. There is a lot of excitement around cryptocurrencies, which has seen Bitcoin rally back through $50k and stick there.
If the halving triggers another mega rally as happened in the past, investors are excited that the Ethereum ETFs coming at that time could see Ether emerge as one of the best-performing cryptocurrencies in the year, with prices in the $10k range or more coming within the range of possibility.
Upcoming Dencun hard fork and possibly ETF approvals just after the Bitcoin halving sustains Ethereum’s push through $3k in a sideways trading market.
Ethereum Breaks Through Key Resistance, A Major Bullish Signal
Ethereum has broken through a key inter-day resistance at $3036 and is building up more upside momentum.
If bullish momentum continues, and Ethereum can breach the $3100 mark, then prices above $3500 could be within sight in the day. The potential to hit $3500 or more within the day could be driven by both FOMO and the fact that Ethereum now presents more opportunities for day traders than other cryptocurrencies. Most of them are currently trading sideways.
However, if buying momentum slows down, bogged down by the broader market’s slow start to the week, the critical level to watch would be $3036, now a key intra-day support level. Ethereum could consolidate between $3036 and $3100 in the day if volumes drop, but this support holds.
On the other hand, if short sellers push Ethereum through the $3036 support, the key level to watch would be $3000, which is a key psychological support level in the day. If $3000 is broken, prices below $2900 could be achieved within the day.
Ethereum Price Prediction: Why $3500 And Above Are More Likely Today
While there is always a likelihood of a consolidation or even a bearish reversal, the odds are that Ethereum will keep doing well in the day. With rising buying volumes, prices above $3500 are possible today.
The key drivers to such an outcome are long-term traders taking positions ahead of Dencun and the ETFs and day traders looking for daily trading opportunities. A confluence of these two factors has created a situation where Ethereum buying volumes on a day when most of the crypto market is yet to find direction.
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