Ethereum Surpasses $4,000 Milestone

Ethereum coin

Ethereum has crossed a significant milestone, achieving its highest price since the end of December 2021, at $4,012. This substantial gain comes soon before the cryptocurrency community’s much anticipated Merge upgrade to Proof-of-Stake (PoS). The news has sparked widespread excitement and expectation among Ethereum owners.

Ethereum Breaks Through $4,000!

Ethereum has surpassed the $4,000 level on major cryptocurrency exchanges like Coinbase and Binance, sparking huge activity in the altcoin market. The comeback above levels observed since the end of 2021 reflects Ethereum’s remarkable performance.

The Merge, an important evolutionary milestone for Ethereum, marked the switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The next critical step is the implementation of proto-dank sharding with EIP-4844, as part of the forthcoming Dencun Hard Fork on March 13. This invention is viewed as a critical step toward making Ethereum a more scalable and efficient blockchain.

According to data, roughly half a billion dollars worth of Ether has been burned in the previous 30 days. This adds to a decrease in Ethereum’s circulating supply and reduces selling pressure on the network, which is a favorable development for ETH owners.

What Do Technical Indicators Say About ETH?

Ethereum’s price appears to be rising as a result of recent cryptocurrency surges. In particular, a $5,000 objective, similar to the top level of $4,936 observed in December 2021, is emerging. Technical indicators, such as the moving average convergence/divergence (MACD) and Awesome Oscillator (AO), confirm Ethereum’s upward trend and indicate that the cryptocurrency might rise even further.

However, if prices fall below the 38.2% Fibonacci retracement line, with a daily candlestick close of $3,307, this bullish thesis may be invalidated. In that situation, a pullback to the psychologically significant support level of $3,000 may be predicted.

Spot Ethereum ETF Remains a Hot Topic

Another key question is whether Ethereum will be categorized as a security or a non-security asset. According to attorney Jake Chervinsky, the SEC is unlikely to categorize Ethereum as a security since doing so would contradict the Commodity Futures Trading Commission’s (CFTC) authority. However, the CFTC’s categorization of Ethereum as a commodity may lessen the likelihood of a confrontation between the two regulators.

A significant conclusion of this predicament is whether the SEC will approve a Spot Ethereum ETF in May. The introduction of a Spot Ethereum ETF might be a significant driver for Ethereum owners, increasing institutional capital inflows. In this situation, the ETF’s acceptance might help Ethereum maintain its position as the second-largest asset by market value.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.