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Ethereum (ETH), the second-largest cryptocurrency by market capitalization, surged past $4,000 on March 11.
This is the highest price point since December 28, 2021.
According to data aggregator CoinMarketCap, ETH has seen a 61% rise over the last 30 days and a remarkable 181% gain over the last year.
Ethereum Market Movement and Bitcoin’s Performance
Ethereum trades at $4,044 at press time, which has seen its market cap increase to over $485 billion. The blockchain network has witnessed over $26.3 billion trading volume in the last 24 hours, bringing its price to $700 shy of its November 2021 all-time high (ATH) of $4,891.70.
JUST IN: $ETH $4,000 pic.twitter.com/mQxVmVyemV
— CoinGecko (@coingecko) March 11, 2024
While Ethereum is grabbing headlines, Bitcoin (BTC), the largest cryptocurrency by market cap, has grown substantially.
Bitcoin hit an all-time high of $72,000 a couple of hours ago today, setting a new ATH since the previously broken record price of $69,000.
With Bitcoin above $71,000, a monumental level gets poked above for Ethereum, the last fib retrace level at $4,000. pic.twitter.com/2aIIiH3xym
— Blockchain Backer (@BCBacker) March 11, 2024
The pump in BTC prices is largely linked to the imminent Bitcoin halving and the introduction of spot Bitcoin ETFs. Since their launch, these funds have become large holders of BTC. According to Bloomberg ETF analyst Eric Balchunas, the ten Bitcoin ETFs now have about $55 billion in assets.
First two months officially in the books (it's felt like six) and the ten bitcoin ETFs now have over $55b in assets with exactly double that in volume at $110b. If these were the numbers at the end of year I'd call them a success. To do it in eight weeks is simply absurd. pic.twitter.com/8YvzQZdYyJ
— Eric Balchunas (@EricBalchunas) March 11, 2024
They have also aligned crypto trading activity with traditional stock market hours, creating a deeper integration of the crypto market with Wall Street.
Ethereum Price Analysis
The Moving Average Convergence Divergence (MACD) indicator of Ethereum shows a bullish crossover, suggesting continued upward momentum for Ethereum.
Consequently, The Relative Strength Index (RSI) is hovering around 64.26. This indicates that the market is gaining strength, which is typically bullish.
However, it’s important to be cautious if the RSI climbs near 70, as this could indicate the market is becoming overvalued and ripe for a pullback. Although, a pullback could be a healthy correction before another price increase.
Is Ethereum Dencun Upgrade a factor for this rise?
The surge in Ethereum’s value could be attributed to renewed enthusiasm post-Bitcoin ETF launch. Some also speculate that the upcoming Ethereum Dencun upgrade, which is expected in the coming days, might be a contributory factor.
Duncan Upgrade coming to Ethereum in a few days. Ethereum will get cheaper, rollups will get very cheap. https://t.co/j7uAyZB2GR pic.twitter.com/CvSdOH7jYe
— Joe Blau (@joeblau) March 11, 2024
Ethereum’s Dencun upgrade will launch on the mainnet on March 13. It aims to optimize data management and storage to enhance efficiency.
This upgrade specifically aims to enable lower fees for layer-2 scaling solutions within the Ethereum ecosystem.
Also, speculation surrounding the upcoming approval of a Spot Ethereum Exchange-Traded Fund (ETF) in the United States is a contributing factor.
Financial experts believe an ETF would increase institutional investment in Ethereum, further increasing the value of ETH.
