The price of Ethereum rose above $3.000 per unit on Tuesday.
The second largest cryptocurrency in the market by capitalization, Ethereum, has broken through an important resistance, reaching a New annual high of $3.000 dollars.
According to data from CoinMarketCap, the price of Ethereum rose from $2.882 to $3.001 per ETH early Tuesday, up more than 4%.
At the time of writing, the price of Ethereum has corrected slightly, falling to $2.926.
Source: CoinMarketCap
The surge in the price of Ethereum has caught the attention of cryptocurrency traders. According to the platform's data, the ETH trading volume has risen by more than 40% in the last few hours, exceeding $19.300 million dollars.
ETH is currently the third most traded cryptocurrency in the crypto world, after stablecoin USDT and Bitcoin, the leading cryptocurrency in terms of market capitalization.
Why did the price of Ethereum go up?
According to cryptocurrency analysts, the ETH price is showing great strength and unique determination to break new highs in the market. Apparently, the Growing expectations about the future of Ethereum are driving the current bullish trend of its cryptocurrency.
Recently, Ethereum developers successfully deployed their new Dencun upgrade on the Holesky testnet, which was the last testnet in the Ethereum ecosystem where this upgrade would be tested. As the implementation of Dencun went smoothly on the testnet, the developers set its arrival on the Ethereum mainnet for mid march.
Dencun is among the most important updates coming to Ethereum, as it will implement a feature that will help the blockchain scale and become more efficient and accessible. This feature, known as proto-danksharding, also represents an intermediate step towards Ethereum’s final phase, danksharding.
Ethereum spot ETFs
Aside from the technical aspects of the network, investors have also been optimistic that US regulators may eventually approve several cryptocurrency-based exchange-traded funds this year.
So far, investment and financial giants BlackRock, Franklin Templeton, Fidelity Investments, Ark Invest, 21Shares, Grayscale Investments, VanEck, Invesco, Galaxy, and Hashdex, which have already launched several Bitcoin spot ETFs, have also filed new applications with the US Securities and Exchange Commission (SEC), seeking the regulator’s approval for the launch of new Ethereum-based exchange-traded funds.
Although the SEC postponed its decision on these ETF applications, analysts and experts have a strong expectation regarding its possible approval, possibly, for next May.
Institutional investment
Crypto analytics platform Lookonchain highlighted that Mike Novogratz's Galaxy Investments made several large ETH purchases this week. In total, the cryptocurrency investment firm recently acquired 26.000 ETH, valued at around $76 million.
In addition to Galaxy Investments' moves on Ethereum, Another entity acquired a total of 54.721 ETH, valued at over $154 million, this week, using several exchange platforms, the crypto analysis platform highlighted. All these operations show the interest that investors and whales have in Ethereum, supporting the growing expectations about the cryptocurrency.
On the other hand, according to data from The Block Research, The number of Ethereum on-chain addresses has grown by more than 90% since last November, a metric that could also be playing in favor of the cryptocurrency and its current upward trend.
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