Ether’s price surpassed the $3,000 mark on February 20, marking its highest level since April 2022. The cryptocurrency saw a 4% surge in the past 24 hours and a 74% surge over the past year, reaching a year-to-date high of $3,000.97 on Binance at 13:45 UTC, according to data from CoinMarketCap.
The price increase coincides with the anticipation of a potential approval of a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission, as well as the implementation of Ethereum Improvement Proposal (EIP) 4844 through the Dencun upgrade. Current odds from Polymarket suggest a 45% chance of ETF approval by May 31.
Wealth management firm Bernstein recently suggested that ETH may be the only other cryptocurrency to secure an ETF spot in the United States, citing its staking yield dynamics, environmentally friendly design, and institutional utility as factors that make it well-positioned for mainstream institutional adoption. Bloomberg’s Eric Balchunas also predicts a 70% chance of approval, indicating a positive outlook for Ether ETFs despite regulatory delays.
The last time Ether traded above $3,000 was nearly 22 months ago, in May 2022, before entering an extended bear market. The recent price performance of ETH may also be connected to the upcoming Dencun upgrade, set to take place on March 13, which is expected to introduce several EIPs and streamline the transaction process.
Data from CoinGlass shows a significant increase in open interest (OI) in the Ether futures market, reaching a record $10.19 billion. This further validates the current volatility in Ether’s price. Market participants are optimistic about the continued bullish price action, especially in light of any news regarding the potential approval of a spot Ether ETF and potential movements in the broader cryptocurrency market.
Please note that this article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and exercise caution when making investment decisions.