Ethereum Tests $3,800 Ahead of Dencun Update
Ethereum has hit a two-year high, breaking the $3,800 mark. Can the asset reach $4,000 before the Dencun update?
Last night, following Bitcoin's all-time high, Ethereum was also able to reach its new two-year high of $3,800. Further rally of the second largest cryptocurrency led to a sharp drop to $3,200, but a couple of hours later the asset tested $3,800.
The overall positive market sentiment, as well as the Dencun update, which is a week away, led Ethereum to new heights. Nevertheless, such a quick achievement of a two-year-high hints at Ethereum's continued growth even after the network update. In February, developers confirmed that the Dencun update would launch on March 13. The important "proto-danksharding" feature is designed to reduce the cost of transactions in Ethereum as well as in Layer 2 networks.
Blobs are coming .oO
— timbeiko.eth ☀️ (@TimBeiko) February 27, 2024
Dencun is scheduled for mainnet activation at epoch 29696, occurring March 13 at 13:55 UTC. See the announcement below for client release versions and other useful info about the upgrade 🤖https://t.co/9Wa3Y5M5k4
Despite concerns that investors will start taking profits, ETH staking data indicates that the bulk of investors remain bullish. The total value of staking has reached the $115 billion mark. This growth also sets a positive trend in the network, improving its security and stability. Investors are highly optimistic about the Dencun upgrade.
The rise in the price of ETH has coincided with a spike in gas prices. According to Etherscan, the peak value reached 219 gwei. Users online noted how negatively this affected their trading activities.
⛽️ #Ethereum gas fees 🥵 pic.twitter.com/5lIVgPB3q7
— Ajay Kashyap (@EverythingAjay) March 4, 2024
Despite the impressive rise in Ethereum's price, the SEC has delayed a decision on the application for Ethereum ETFs from BlackRock and Fidelity. The regulator is seeking public comment on the potential fraud and manipulation risks associated with the spot ETH ETF.
At the time of writing, Ethereum was trading at $3,877.
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Bulls are actively trying to approach the $3,920 resistance level, which will open the way to the critical $4,000 mark. A break above would set the stage for further bullish momentum and a potential price opening. The upcoming update could very well be that catalyst for a price rise. The overall sentiment also remains bullish.
On the downside, the first major support is in the $3,400 area. The next key support could be the $3,340 area. A move below the $3,340 level could send the price towards $3,220 and towards $3,120.
This is not a 100 percent statement. The cryptocurrency market is very volatile. Investors should exercise caution.
