Renowned cryptocurrency analyst Michael Van Pope expressed optimism about Ethereum, speculating on a potential new all-time high. He pointed to two major catalysts propelling the bullish momentum: the impending Dencun upgrade and the increasing probability of ETF approval. Ethereum (ETH) achieved a significant milestone by surpassing $3,000 and surging to $3,800 earlier this week, reaching its highest value in almost two years.
Scheduled for release on March 13, the Dencun upgrade is poised to become one of Ethereum’s most significant updates since the transition to the Proof-of-Stake consensus. This upgrade introduces “proto-dank sharding” as outlined in the Ethereum Improvement Proposal EIP-4844. The implementation of this feature aims to alleviate congestion on the Ethereum blockchain by utilizing blobs, thereby reducing costs for Layer 2 chains and rollups. Beyond enhancing scalability, the upgrade is set to substantially decrease transaction fees on Layer 2s through the integration of proto-dank sharding into Ethereum.
Van Pope emphasized Ethereum’s resilience amid approaching resistance levels and minimal movement in its Bitcoin (BTC) pair. According to his analysis, Ethereum is expected to gain additional strength, driven by the imminent upgrade and the potential approval of ETFs.
The discussion around ETF approval gained momentum following Eric Balchunas, an ETF analyst at Bloomberg, estimating a 70% chance of approval by May 23. This date marks the final deadline for the SEC to rule on the ETF application submitted by Ark and 21 Shares.