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Ethereum has surpassed an important milestone by reaching its highest price level since the end of December 2021, hitting $4,012. This marks a significant increase ahead of the long-awaited Denice upgrade and the transition to Proof-of-Stake (PoS), stirring excitement and anticipation within the Ethereum community.
Ethereum Breaks $4,000 Barrier!
With Ethereum crossing the $4,000 mark on major cryptocurrency exchanges like Coinbase and Binance, there has been significant activity in the altcoin market. This return to levels not seen since the end of 2021 demonstrates Ethereum’s robust performance.
The transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) for Ethereum took place through a significant developmental milestone known as the Merge. Now, the next major step is the introduction of proto-danksharding with EIP-4844, which is part of the planned Denice Hard Fork on March 13. This development is seen as a crucial step towards making Ethereum a more scalable and efficient Blockchain.
Data shows that approximately half a billion dollars worth of Ether has been burned in the last thirty days. This contributes to a reduction in Ethereum’s circulating supply and lessens the selling pressure on the platform, which is considered a positive development for ETH holders.
What Technical Indicators Suggest for ETH?
Ethereum appears to be increasing its prices, supported by recent rallies in the altcoin market. A target of around $5,000, close to Ethereum’s peak price of $4,936 in December 2021, is becoming evident. Technical indicators, such as the moving average convergence/divergence (MACD) and the Awesome Oscillator (AO), support Ethereum’s upward trend and suggest the altcoin could climb even higher.
However, if prices fall below the 38.2% Fibonacci retracement level with a daily candlestick closure at $3,307, this bullish thesis could be invalidated. In that case, a pullback to around the psychologically significant support level of $3,000 could be expected.
Spot Ethereum ETF Remains a Hot Topic
Another significant issue is whether Ethereum will be classified as a security or a non-security asset. As attorney Jake Chervinsky points out, Ethereum being classified as a security by the SEC seems unlikely, as it could conflict with the Commodity Futures Trading Commission’s (CFTC) jurisdiction. However, the CFTC’s classification of Ethereum as a commodity could reduce the risk of conflict between the two agencies.
A key outcome of this situation is whether the SEC will approve a Spot Ethereum ETF in May. The approval of a Spot Ethereum ETF could be a major catalyst for Ethereum holders and increase institutional capital inflow. If approved, Ethereum’s position as the second-largest asset by market value could be further solidified.
