- Ethereum’s projection towards $5,000 is based on its recent valuation, expectations of an ETF, and the Dencun upgrade.
- Factors such as ETF approval and technical improvements to the network underscore a promising future for Ethereum, boosting its value.
Market analysis indicates that Ethereum’s price could be on track to surpass $5,000. This projection is supported by several elements: recent momentum that has pushed its value beyond $4,000, positive expectations ahead of the possible approval of an Ether-based ETF, and the anticipated Dencun upgrade.
Despite these encouraging trends, there are certain challenges, such as the supply zone located between $4,522 and $4,646, which could play a crucial role in this upswing.
The enthusiasm generated by the potential approval of an Ethereum ETF could boost its price in a similar way to what was experienced with Bitcoin, following BlackRock’s proposal to launch such a financial product.
Ethereum is currently in an accumulation phase that suggests the possibility of an unprecedented rise. However, this event could also trigger a sell-off reaction similar to that seen after the approval of Bitcoin ETFs, although any correction is expected to be brief.
In addition, the Dencun upgrade, scheduled for this week, is anticipated to have a favorable impact on Ethereum’s share price. This upgrade seeks to increase the scalability, efficiency and security of the Ethereum network.
Dencun, which symbolizes the beginning of the phase known as “The Surge” in the network’s development, represents the shift from Proof of Work to Proof of Stake, a process referred to as “The Merge.”
Therefore, Ethereum’s trajectory towards $5,000 appears to be with opportunities and some obstacles, as we have described in ETHNews.
Since the implementation of the Merge on Ethereum, the total amount of ETH has decreased by 424,654 units. The ETH pool continues to steadily decline.
