Ethereum (ETH) has been experiencing significant price growth recently, with its value surging by 60% monthly and surpassing the $4,000 mark for the first time since December 2021. This positive momentum has led many analysts to believe that ETH could potentially reach a new all-time high in the near future. The popular analyst, X user Ali, supports this theory by stating that Ethereum’s path to $5,000 “looks increasingly clear as resistance thins.”
Several key indicators suggest that Ethereum’s price rally may continue in the coming weeks. An analysis provided by IntoTheBlock identifies the $4,522-$4,646 price range as a major supply zone, where nearly 600,000 addresses hold more than 1.63 ETH. Additionally, approximately 95% of current ETH holders are currently sitting on paper profits, indicating a positive sentiment in the market.
One key factor that could further boost Ethereum’s market performance is the upcoming Dencun upgrade, scheduled to take place this week. The upgrade aims to enhance the scalability, efficiency, and security of the Ethereum blockchain. Dencun marks the beginning of “The Surge” era in the network’s roadmap, leading up to the transition from Proof-of-Work to Proof-of-Stake consensus algorithm, known as “The Merge.”
There is speculation surrounding the approval of an Ethereum ETF in the US, similar to the Bitcoin ETFs that were approved earlier this year. A potential Ethereum ETF could potentially lead to a surge in market activity, similar to the rally observed after the approval of Bitcoin ETFs. However, there is also a possibility of a “sell-the-news” event post-approval, similar to what happened with Bitcoin ETFs.
Another significant event on the horizon that could impact Ethereum’s valuation is the approaching Bitcoin halving, scheduled for next month. The Bitcoin halving occurs every four years and reduces the rate at which new BTC is mined. Historically, the Bitcoin halving has been followed by an overall market resurgence, which could have a positive impact on the price of Ethereum as well.
Ethereum’s current price growth, favorable market indicators, upcoming network upgrades, and potential ETF approval, along with the upcoming Bitcoin halving event, all point to a positive outlook for the future of Ethereum. Investors and analysts are optimistic about the potential for ETH to reach new highs in the near future, making it an exciting time for those involved in the cryptocurrency market.