Ethereum Surpasses $4,000 for First Time in Two Years

Key Takeaways

  • Ethereum surpasses $4,000, reaching its highest value since December 2021.
  • ETH sees significant gains, with a 62.39% rise over the last 30 days.
  • The upcoming Ethereum Dencun upgrade and potential ETFs contribute to its price surge.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, surged past $4,000 on March 11.

This is the highest price point since December 28, 2021.

According to data aggregator CoinMarketCap, ETH has seen a 61% rise over the last 30 days and a remarkable 181% gain over the last year.

Ethereum Market Movement and Bitcoin’s Performance

Ethereum trades at $4,044 at press time, which has seen its market cap increase to over $485 billion. The blockchain network has witnessed over $26.3 billion trading volume in the last 24 hours, bringing its price to $700 shy of its November 2021 all-time high (ATH) of $4,891.70.

While Ethereum is grabbing headlines, Bitcoin (BTC), the largest cryptocurrency by market cap, has grown substantially.

Bitcoin hit an all-time high of $72,000 a couple of hours ago today, setting a new ATH since the previously broken record price of $69,000.

The pump in BTC prices is largely linked to the imminent Bitcoin halving and the introduction of spot Bitcoin ETFs. Since their launch, these funds have become large holders of BTC. According to Bloomberg ETF analyst Eric Balchunas, the ten Bitcoin ETFs now have about $55 billion in assets.

They have also aligned crypto trading activity with traditional stock market hours, creating a deeper integration of the crypto market with Wall Street.

Ethereum Price Analysis

The Moving Average Convergence Divergence (MACD) indicator of Ethereum shows a bullish crossover, suggesting continued upward momentum for Ethereum.

Consequently, The Relative Strength Index (RSI) is hovering around 64.26. This indicates that the market is gaining strength, which is typically bullish.

However, it’s important to be cautious if the RSI climbs near 70, as this could indicate the market is becoming overvalued and ripe for a pullback. Although, a pullback could be a healthy correction before another price increase.

ETHUSD MACD / Credit: AiOlux
ETHUSD MACD / Source: AiOlux

Is Ethereum Dencun Upgrade a factor for this rise?

The surge in Ethereum’s value could be attributed to renewed enthusiasm post-Bitcoin ETF launch. Some also speculate that the upcoming Ethereum Dencun upgrade, which is expected in the coming days, might be a contributory factor.

Ethereum’s Dencun upgrade will launch on the mainnet on March 13. It aims to optimize data management and storage to enhance efficiency.

This upgrade specifically aims to enable lower fees for layer-2 scaling solutions within the Ethereum ecosystem.

Also, speculation surrounding the upcoming approval of a Spot Ethereum Exchange-Traded Fund (ETF) in the United States is a contributing factor.

Financial experts believe an ETF would increase institutional investment in Ethereum, further increasing the value of ETH.