Ether (ETH) has seen a slight increase today, with a 0.27% rally over the past 24 hours, bringing its price to $3,257. Over the past seven days, Ether’s price has risen by 11%, following in the footsteps of Bitcoin (BTC), which has seen a 16.3% increase during the same period.
The surge in Ether’s price can be attributed to Bitcoin’s recent surge to a two-year high of $57,000, as well as the anticipation surrounding the upcoming Dencun upgrade.
Bitcoin’s rise above $57,000 on February 27 has boosted investor confidence in Ether, as the two largest cryptocurrencies are historically correlated in terms of price. As a result, the Crypto Fear & Greed index, which measures market sentiment, reached a two-week high of 79, indicating extreme greed among investors. Last month, the index averaged 54, indicating neutrality.
Furthermore, the spot Bitcoin exchange-traded funds in the United States broke a record with a daily trading volume of $2.4 billion on February 26. This influx of funds into Bitcoin is also having a significant impact on Ether, which is expected to flow into smaller altcoins in the coming weeks, according to a post by pseudonymous crypto analyst Rekt Capital.
In addition, Ether futures open interest on Binance, the world’s largest cryptocurrency exchange, reached an all-time high of $3.88 billion on February 26, surpassing the previous high of $3.31 billion set on November 3, 2021, when Ether was trading above $4,400. The total open interest for Ether futures across all platforms has now reached $10.54 billion, according to Coinglass data.
The upcoming Dencun upgrade, scheduled for March 13, is also contributing to Ether’s positive price action. This upgrade aims to reduce transaction costs and improve the scalability of the Ethereum network by introducing the concept of proto-danksharding, which temporarily compresses transaction data in a more cost-effective format.
Overall, the combination of Bitcoin’s rally, the anticipation of the Dencun upgrade, and the increased interest in Ether futures has led to the recent surge in Ether’s price. However, it is important for readers to conduct their own research and exercise caution when making investment decisions, as every investment and trading move carries risk.