Ethereum Nears $3k in Anticipation of Dencun Upgrade and Spot ETF

By: Eva Baxter

Ethereum (ETH), the world's second-largest cryptocurrency by market capitalization, is nearing the $3,000 mark, reporting a growth of 4.12% over 24 hours. The price surge is believed to be driven by the upcoming Dencun upgrade and potential approval of an Ethereum spot exchange-traded fund (ETF).

According to brokerage firm Bernstein, there is a 50% chance of an Ethereum spot ETF getting SEC approval by May 2024, and a near-certainty within the year. Such updates are believed to have positively impacted investor sentiment, driving up Ethereum's price.

Alongside the ETF optimism, the crypto community anticipates the Dencun upgrade, scheduled for March 13, 2024. This upgrade, expected to enhance Ethereum's transaction costs and scalability through proto-danksharding, has been a factor in Ethereum's recent price surge.

It's noteworthy that Apollo co-founder Thomas Fahrer expressed concerns around Coinbase's role as an ETF custodian, suggesting potential compromising of Ethereum's proof-of-stake model by the firm. As per Dune Analytics, Coinbase currently manages around 15% of all ETH staking.