Ethereum reaches a key level: what are the reasons?
The first reason driving Ethereum is the general bull market that Bitcoin (BTC) is leading. Another cause is the high probability that this year the approval of spot Ether ETFs in the US by the SEC will occur.
On the other hand, during 2024 Ethereum will have an important update, Dencun, which promises to optimize the use of the network and reduce transaction fees. Finally, it is highlighted that throughout the “crypto winter”, the altcoins that came to life in ETH have continued to develop and maintain a solid user base.
Ethereum close to $3,000: what do analysts think?
He price movement apparently has led many observers to believe that a “ETH bull market” is close, while others have stated that the altseason has already returned.
“I think it’s comingn several powerful catalysts that could trigger a altcoin rally”Apollo Capital Chief Investment Officer Henrik Andersson agreed in comments to Cointelegraph.
These were mainly Ethereum fundamentals such as the Dencun upgrade and mainnet launches for the Blast scaling solution and the EigenLayer reset platform, he said, adding: “Ethereum has been underperforming BTC for the past year; “It feels like it is playing catch-up in particular due to supply sinks and being deflationary since the move to PoS.”
“We are entering an ETH bull market [que es] beta for altcoins,” said Yuga Cohler, Coinbase senior engineering manager at X.
For his part, economist and trader Mikybull Crypto told his 60,000 followers on X that March is always bullish for ETH, and that $3,000 is on the table, adding: “This altseason cycle is going to be huge!”
Altcoin rally?: a warning
However, Markus Thielen, head of 10x Research, says there is a lack of evidence to suggest an altcoin season is coming.
“Although there is speculation about the possibility of an altseason, the current panorama lacks substantial evidence, as bitcoin’s lasting dominance stands at 51%.”
He explained that to launch a viable altcoin season, ““sustained reductions in bitcoin dominance below 45% are necessary.”
“Unlike the thematic rallies seen during the summer ICO and DeFi bull markets, the current rally lacks a discernible narrative aside from the influx of investments into bitcoin ETFs.”
Source: Ambito
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