Ethereum Hits $3,800: Dencun Upgrade and ETF Hype Propel Surge

Michael Van Pope, a prominent crypto analyst, took to X speculating a new all-time-high for Ethereum. He stated two key factors driving the bull run could be the Dencun upgrade and the likelihood of ETF approval. Ethereum (ETH) crossed $3,000 and surged to $3,800 earlier this week, marking its highest value in nearly two years.

The next in line for a potential all-time high test is #Ethereum.

Why?
– Dencun upgrade.
– Potential Spot ETH ETF approval.

Crucial resistance is approaching, but the $BTC pair has barely moved.

We’ll likely see more strength coming from this asset. pic.twitter.com/LyWh8ht9ow

— Michaël van de Poppe (@CryptoMichNL) March 6, 2024

The Dencun upgrade, scheduled for release on March 13, is poised to be one of Ethereum’s most significant updates since the transition to Proof-of-Stake consensus. This upgrade brings the implementation of “proto-dank sharding,” which is introduced with the Ethereum Improvement Proposal EIP-4844.

This particular feature aims to reduce congestion on the Ethereum blockchain by using blobs, which in turn will decrease costs for Layer 2 chains and rollups. This upgrade will not only increase the scalability of the blockchain network but also significantly reduce transaction fees on Layer 2s by introducing proto-dank sharding to Ethereum.

Source:TradingView

Van Pope highlighted the robustness of Ethereum in light of the approaching resistance levels and the minimal movement in its Bitcoin (BTC) pair. According to his analysis, Ethereum is expected to gain further strength, boosted by the impending upgrade and the possibility of ETF approval.

The discussion about ETF approval gained momentum after Eric Balchunas, an ETF analyst at Bloomberg, estimated a 70% chance of approval by May 23, which is the final deadline for the SEC to rule on the ETF application filed by Ark and 21 Shares.

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