Ethereum surpasses the $2400 level, gaining +1.70%, outperforming Bitcoin. Sentiment on the second-largest cryptocurrency is improving as it approaches two strong catalysts.
The first of these is, of course, the spot ETF on Ethereum, whose final deadline is in May. Investors speculate that ETH will follow Bitcoin's path, although currently, analysts see the chances as somewhat lower.
The second catalyst is be the upcoming major Dencun update. The mainnet is set to take place in March. However, a special developers' meeting dedicated to this issue is scheduled for tomorrow, where the exact date for the mainnet will be determined. Today, the third test network was also completed. The Dencun update will not only enable scalability of the blockchain network but will also significantly reduce transaction fees on layer 2 by introducing proto-danksharding to Ethereum. The direct consequences will be much lower costs for L2-type projects and much greater scalability. Direct beneficiaries, apart from Ethereum, will certainly include popular projects like Polygon (MATIC), Arbitrum (ARB), and Optimism (OP).
Ethereum's price has broken above the $2400 resistance zone, recording a second day of dynamic gains. If the current momentum continues, it could allow bulls to retest the zone around $2500.
Source: xStation 5
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