Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has reached $4,000 for the first time since December 2021. Since the start of 2024, Ethereum’s value has soared by +70.00%, showing no signs of slowing down.
Recently, the SEC scheduled its decision on the Spot Ethereum ETF for May 23rd, 2024, generating positive sentiment about the future direction of ETH's price. Also, the Dencun hard fork is approaching, which aims to reduce transaction fees across layer 2 blockchains on top of Ethereum.
How could this impact the price of ETH?
From the perspective of the Spot Ethereum ETF, institutions will be purchasing large amounts of ETH to back their ETFs. As per basic economics, this will increase ETH's demand and decrease its supply. This could, in turn, potentially push the price of ETH to new heights, mirroring the impact seen with the Spot Bitcoin ETF.
With the upcoming Dencun hard fork, the objective is to reduce transaction fees on layer 2 blockchains. This could encourage more users to engage with products and services on layer 2 networks, potentially boosting the demand for ETH. Furthermore, increased activity on these networks might lead to a rise in ETH's value.
Finally, we find ourselves in a bullish market, where assets typically appreciate. As of this writing, the global crypto market cap stands at approximately $2.68 trillion, marking a +59% increase from 2023's $1.68 trillion.
Where’s Ethereum Heading Next?
Ethereum is trending with excitement as the potential Spot Ethereum ETF nears its introduction to traditional markets, along with the Dencun hard fork.
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