Ethereum is approaching $3,000 (and it’s not just because of Bitcoin’s rise)

The price of Ether (ETH), the native cryptocurrency of the Ethereum network, has increased rapidly in the last week and has reached close to $3,000.

At the time of this publication, Each unit of ETH is trading at $2,850 on major exchangesHowever, that number varies from second-to-second due to high volatility.

In the following graph provided by the TradingView platform, you can see how the price of ETH has fluctuated since the end of 2022:

It is undeniable that The rise of Bitcoin (BTC), which has reached prices not seen since 2021, is pulling many cryptocurrencies, of which is ETH. There are some digital assets that are at risk these days.

But the rise in the price of ETH also has its reasons. The main three relate to a major update; With the imminent launch of some financial products; And with the continued development of the Ethereum ecosystem.

update is denkun, As CriptoNoticias detailed, this is expected to make network commissions cheaper. In short, as explained in the above publication, “Denkun will allow the space of each block to be used more efficiently, making transactions lighter. (…) For this, so-called blobs will be used in Ethereum, a concept that refers to an element that is able to adapt its size to take up space in the available space. “In the context of Ethereum, blobs can help fill unused spaces in blocks.”

If everything goes according to plan and there are no delays in development, Denkun to be implemented on Ethereum on March 13,

On the other hand, the financial products mentioned Ether Spot ETF in the United States, The US Securities and Exchange Commission (SEC) has 9 proposals for these financial instruments. The body will have to review them and respond to the approval or rejection of these ETFs before May 23.

In keeping with the precedent with the Spot Bitcoin ETF, which was approved just a month ago, Hopefully ETH will suffer the same fate and get mass approvals closer to the deadline,

Because spot ETFs must be backed by the underlying asset (in this case, Ether), if they are approved, issuing companies will need to acquire large amounts of ETH. According to the simple law of supply and demand, the price of cryptocurrencies will rise.

In third place, The continuous and unstoppable growth of the Ethereum ecosystem increases the demand for the ETH cryptocurrency (Required to pay commission on the said network). The decentralized finance industry continues to grow and non-fungible tokens (NFTs) are refusing to die down and making a resurgence, with Ethereum being its primary home.

Everything changes if price is measured in bitcoins

Something interesting can be seen in the following TradingView chart, which shows the price of ETH, but not measured in dollars, but against Bitcoin:

Throughout 2023, although the price of ETH rose in dollars, it was falling against Bitcoin, Only now are it starting to show signs of a possible rebound.

According to investment firm, Stoney Chambers, ETH may have a semester of recovery against BTCBut we will have to wait for the coming weeks and months to see how this movement develops.