Bitcoin price experienced a rapid drop to $59,000 after reaching an all-time high. The approximate $10,000 decline is linked to intense profit-taking and is not surprising for investors. So, what price is the largest altcoin by market value targeting? Ethereum is finding buyers at $3,500 as of the time this article was written.
Ethereum (ETH)
March is crucial for Ethereum because the Dencun update will occur next Wednesday, just one week away. This update will significantly reduce transaction fees on the network. We will see fees for Ethereum layer2 solutions drop by 90%. This will increase network activity and enable popular protocols to reach more users.
The update will challenge Solana and other networks’ low transaction fee advantage (now largely in the future at a much more significant level), increasing Ethereum’s popularity. ETH, which reached its highest level of the year at $3,822, has not yet fully priced in this development.
The 68% surge in daily trading volume accompanying ETH’s rise is currently at $33.29. According to CoinMarketCap, with a market value of $453 billion, Ether is refocusing on the half-trillion-dollar target.
Ethereum Price Prediction
The Dencun upgrade is the first reason for the price increase. The second reason is the final decisions on Spot Ethereum ETF applications to be made in May. Remember how excitement was fueled on BTC‘s final decision date. People had lined up to buy BTC in December, and by March, the price reached an all-time high.
Moreover, reasons like stake income and the growth potential of infrastructure services make ETH ETF look more appetizing. The third factor supporting the continuation of the rise is negative inflation. Part of the transaction fees on the network go to burning, leading to a contraction in supply. The fourth key detail is the 7.7% decrease in supply on exchanges over the last 90 days. The exchange supply of ETH at 13.14 million is at its lowest level in 20 months, indicating much less Ether ready for sale.
Data from Coinglass shows that Ether futures open positions have risen above $8 billion. Investors’ belief in the rise is strong, and the first psychological barrier targeted is $4,000. The price could soon surpass this level.
