Ethereum Price Prediction: Is ETH Going to Surge to $5K in March?
TL;DR
Ethereum (ETH) sees significant price growth, with expectations of reaching new highs, backed by favorable market indicators and upcoming network upgrades.
Speculation around the approval of an Ethereum ETF in the US and the upcoming Bitcoin halving event could further boost ETH’s market performance.
‘It’s a Matter of When’
Ethereum (ETH) has been among the best-performing cryptocurrencies (at least from the top 10 list) in the past several weeks, with its price surging by 60% monthly and surpassing the $4,000 level for the first time since December 2021.
Some analysts and key indicators suggest that the rally could continue in the near future, meaning the asset might reach a new all-time high. The popular X user Ali supports that thesis.
He believes Ethereum’s path to $5,000 “looks increasingly clear as resistance thins.” Ali observed a chart provided by IntoTheBlock to outline the $4,522-$4,646 as a major supply zone, where almost 600,000 addresses hold more than 1.63 ETH.
The crypto analytics platform also shows that the asset’s recent price appreciation has benefited investors, with approximately 95% of holders sitting on paper profits.
ETF Excitement and Network Upgrades
The first spot Bitcoin ETFs in the United States were approved earlier this year, but such a product with Ethereum as an underlying asset is still waiting for a green light from the relevant regulators.
BTC seemed to be in an excitement mode following BlackRock’s application to launch an ETF, and the months leading up to the approval were highly bullish. Ethereum is currently in the same build-up zone, meaning the crypto community might witness the same rally.
On the other hand, the potential launch of a spot ETH ETF in America might lead to the same immediate “sell-the-news” event observed after the BTC ETF approvals. Recall that the correction did not last long, with the primary cryptocurrency ascending to a new all-time high earlier this week.
Another factor that could positively impact ETH’s valuation in the near future is the upcoming Dencun upgrade. It is scheduled to take place this week and focuses on increasing the scalability, efficiency, and security of the Ethereum blockchain.
Dencun (combined from the words Cancun-Deneb) marks the beginning of “The Surge” era in the network’s roadmap – a process that follows the historical transition from Proof-of-Work consensus algorithm to Proof-of-Stake, known as “The Merge.”
The BTC Halving
Last but not least, we will touch upon the approaching Bitcoin halving, which is slated for next month. The event occurs roughly every four years and reduces the rate at which new BTC is mined.
It is a vital part of the asset’s anti-inflationary nature and historically has been followed by an overall market resurgence. Recall that ETH hit an ATH of over $4,700 a year and a half after the previous halving.
Those willing to dive deeper and learn the essential specifics of the halving, feel free to watch our dedicated video below:
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Filed under: Bitcoin - @ March 12, 2024 12:25 pm