Analysts highlight three key factors that point to a rise in prices.
Renowned cryptocurrency analyst Michael van de Poppe recently outlined three key factors that could portend a bullish phase for Ethereum, the second-largest cryptocurrency by market capitalization. One of the important factors he identified is Bitcoin’s current behavior.
The analyst noted that signs of Bitcoin’s recent bottom as the market leader tend to outpace altcoin rallies, suggesting a potential upside for Ethereum. Van de Poppe also highlights the growing excitement surrounding a spot Ethereum Exchange-Trade Fund (ETF).
According to Van de Poppe, the growing buzz around these spot ETFs is a significant catalyst that could boost the value of Ethereum in the coming weeks.
Additionally, Ethereum is in the process of rolling out a significant network upgrade. Aimed at reducing transaction costs by up to 90%, this update is expected to significantly improve the efficiency and scalability of the network.
momentum toward $ETH It’ll probably come in the next few weeks.
take over:
– #Bitcoin Hitting bottom becomes an opportunity for altcoins to take a new leap forward.
– Ethereum Spot ETF Hype.
– Ethereum releases new upgrade to reduce costs by 90%. pic.twitter.com/N8bDi52F8M— Michael van de Poppe (@CryptoMichNL) January 25, 2024
Latest updates on Ethereum Deacon upgrade
Regarding updates, the Ethereum development team is making progress with the Dencun upgrade, a significant “hard fork” that aims to improve the efficiency of the blockchain.
Core Ethereum developer Tim Beiko updated the community on the progress this morning. Incorporating “proto-danksharding”, Dencun is set to make Ethereum more accessible and cheaper for users by reducing transaction costs for layer 2 solutions.
According to the developer, this upgrade will be activated on the Sepolia testnet on January 30th and on the Holsky testnet on February 7th, and if the test is successful, mainnet implementation will follow.
More testnet blobs are on the way. oO
Dencun will be activated in Sepolia on January 30th and in Holesky on February 7th. If you run nodes on either network, now is the time to update!
Assuming both of these go smoothly, mainnet is next ✅https://t.co/QbEUACix2S
— timbeiko.eth ☀️ (@TimBeiko) January 25, 2024
a brighter future
Despite these positive developments, Ethereum’s market performance reflects the overall bearish sentiment in the cryptocurrency market, led by Bitcoin. ETH has fallen 13.7% over the past week and is currently trading at $2,216.
However, analysts like Van de Poppe urge caution, especially regarding the impact of Bitcoin spot ETFs. Although there may be short-term selling pressure, Van de Poppe remains optimistic about the long-term outlook.
Analysts suggest that an influx of new capital from various market players could push Bitcoin, and by extension Ethereum, to new heights.
The market needs to understand the impact of ETFs more accurately.
In the short term there is some selling pressure, but in the long term there is a huge amount of new money flowing into the market from new players.
As a result, #Bitcoin We may be driving this cycle higher than we think.
— Michael van de Poppe (@CryptoMichNL) January 25, 2024
Featured image by Unsplash, chart by TradingView
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