4 Reasons Why the Ethereum (ETH) Price Could Keep Soaring in the Near Future
The post 4 Reasons Why the Ethereum (ETH) Price Could Keep Soaring in the Near Future appeared on BitcoinEthereumNews.com.
TL;DR Ethereum’s recent price surge coincides with a shift towards self-custody and an anticipated blockchain upgrade. ETH’s valuation might also be positively impacted by regulatory developments, among other reasons. Abandoning Exchanges The price of Ethereum (ETH) has increased significantly in the past several weeks, recently surpassing the $3,000 milestone for the first time since the spring of 2022. Some on-chain metrics suggest that the asset might be poised for a further rally. According to CryptoQuant data, Ethereum’s exchange netflow has been predominantly negative in the past month, charting massive red candles in the last few days. ETH Exchange Netflow, Source: CryptoQuant Shifting from centralized platforms to self-custody methods is considered bullish as it might signal the investors’ long-term commitment to hold their stash. It also reduces the immediate selling pressure. That trend could drive innovation in services that make self-custody more accessible to the broader audience, which might attract new users and encourage existing investors to increase their exposure. The Upcoming Upgrades Another factor hinting that ETH’s price could pump even more in the near future is the approaching Dencun upgrade. It is scheduled to take place in March and focuses on increasing the efficiency, scalability, and security of the Ethereum blockchain, making it more competitive to rival networks such as Solana. Vitalik Buterin described the upgrade as a considerable development for his brainchild and the Layer-2s associated with it. Dencun marks the beginning of “The Surge” era in the Ethereum roadmap – a process that follows the historical transition from Proof-of-Work consensus algorithm to Proof-of-Stake, known as “The Merge.” The integration of Verkle Trees on the Ethereum blockchain is also highly anticipated. It is expected to decrease disk space requirements, enhance the functionality of staking nodes, and improve the overall user experience. A Possible ETH ETF Bitcoin took the main stage earlier this…
Filed under: News - @ February 21, 2024 11:26 pm