Ethereum gains 3.20% and breaks above the $4,000 level two days before the Dencun update. Although in recent days the returns on Ethereum have exceeded those on Bitcoin we are seeing the reverse situation again today. Bitcoin at the time of publication breaks another critical level of USD 70,000 gaining 3.50% to USD 71,400.
Another catalyst for Ethereum in the coming months could be the acceptance of applications for spot ETFs, with the final deadline of 23 and 24 May 2024 for applications submitted by VanEck and Ark 21Shares. If all goes well then we could see a similar trend to that of BTC ETFs, which are currently a major force in the market. Here's a brief summary of ETH highlights from the past few days:
- Ethereum's revenue hits nearly 2-year highs at $193M, driven by meme coin frenzy boosting blockchain activity.
- Grayscale and Coinbase discuss spot ether ETFs with SEC, aiming to convert Ethereum Trust into ETF after recent Bitcoin ETF approvals.
- Base to back EIP-4844 at Dencun launch, promising over tenfold fee cuts for its Ethereum Layer 2 users.
At current levels, ETH still remains 20% below its historical peak. This gives considerable potential for further upside, given that Bitcoin is already at record levels. If Ethereum breaks through the US$4,000 on a daily interval, the next ranges for upward movement would be US$4,300 and US$4,800 respectively.
Source: xStation 5
