Ethereum Rockets To $3,200: 'Next Areas Up Are $3,500 And $4,000,' Says Analyst

Ethereum ETH/USD surged to $3,200 for the first time since April 2022, up 3.6% on the day. The network awaits its Dencun upgrade in mid-March and a possible Ether spot ETF approval in May.

What Happened: The Dencun upgrade in March, Bitcoin halving in April, and the spot Ether ETF decision in May are potential factors fueling the price rally in Ethereum.

The upgrade will address some of the scalability problems and introduce proto-danksharking to the network, improving its speed and making it more economical to use through Layer-2 solutions.

Ethereum is following Bitcoin's bullish trajectory. A Standard Chartered report had estimated that with a Spot Ether ETF approved in May, prices could rally above $4,000.

Coinglass data shows Open Interest of $11.35 billion (+1.95%), peaking at its highest levels in over two years.

The funding rate has reached its highest levels since November 2023. This reflects new capital entering the market due to rising speculative interest, as well as hedging.

Also Read: Bitcoin Peaks At $52,000, Ethereum Gains Double Digits, Doge Back In Top 10 - The Week In Retrospect

Why It Matters: "Full-time Degen" Bitcoin Ape highlights that Ethereum has broken the fourth resistance faced in February, having also cleared the previous three during its second test. He foresees Ethereum not holding this resistance for long, with the bull market drawing near and its former all-time high within sight.

Cryptocurrency trader Altcoin Sherpa tweeted: 

Rekt Capital, another trader, sees Ethereum on the verge of a historic monthly close.

BlackRock, VanEck and Grayscale are all awaiting possible regulatory approval for a spot Ether ETF in May 2024. Recently, Coinbase was named as the custodian in five out of eight Ethereum ETF applications. 

However, prediction market traders only see a 44% chance of an approval by May 31.

Price Action: At the time of writing, Ethereum was trading at $3,200, up 3.6% over the past 24 hours, as reported by Benzinga Pro.

Read Next: Ethereum Registers 15% Weekly Gain, $3,000 Within Reach: 'As Bullish As Fundamentals Can Get,' Says Analyst

Image: Pixabay