Ethereum Hits $3,200 Mark Ahead of Dencun Update
Ethereum reached the $3,200 mark for the first time since April 2022.
The recent surge in the price of Ethereum can be attributed to a number of factors, including the upcoming network upgrade, Dencun, and the growing speculation regarding the possible approval of Spot Ethereum ETFs in May.
The March upgrade will address some scaling issues, enhance network speed, and make it more cost-effective to use the network through Layer 2 (L2) solutions. As a result, many tokens used in L2 solutions based on Ethereum have seen a significant increase in value in recent times, with their Total Value Locked (TVL) approaching the significant $30 billion mark as cryptocurrency prices rise. Among these, Arbitrum holds the largest share, with a TVL of $13.26 billion, followed by Optimism ($7.57 billion), Manta Pacific ($1.89 billion), and StarkNet ($1.36 billion).
Investors expect that, if the possible approval of a spot Ethereum exchange-traded fund (ETF) is granted, it could lead to an increase in the price of Ethereum to $4,000. This would confirm the current rally in Ethereum prices. Additionally, total open interest in Ethereum has reached a record high of $11.35 billion in the last two years. This confirms the growing interest of institutional investors in the asset. These factors have also played a significant role in shaping the current price of Ethereum.
As of the time of this writing, Ethereum is trading at $3,265, with a new multi-week high near $3,274.
Source and Copyright © TradingView
The asset has since slightly declined in price. The immediate barrier to further growth is around the $3,250 level, while the first major resistance lies around the $3,275 mark. Further resistance could occur around the $3,320 mark, above which the price could see bullish momentum develop.
On the downside, Ethereum may not be able to surpass the $3,250 resistance level and could drop to the $3,200, $3,150, and $3,130 levels of support.
This is not a definitive statement, as the cryptocurrency market is highly volatile and unpredictable. It is advised that investors conduct their own research before making investment decisions.
