Ethereum’s Price Soars After Bitcoin ETF Approvals!

The SEC’s historic approval of Bitcoin ETF on Wednesday has shot up the price of Ethereum by 10% in the last 24 hours. This price hike has started to develop as many crypto investors hope to get Ethereum ETF approved by the SEC after this year. Let us discuss the driving factors for Ethereum’s price soars in the article below. 

Due to this sudden price surge, Ethereum is now at the threshold of a potential price surge, which could lead to a bullish storm in the upcoming months.  A significant driving factor that most probably led to this soar. First was the imminent activation of the Dencun upgrade, known as the proto-danksharding upgrade or EIP-4844, on the Goerli testnet on January 17. 

What Is EIP-4844, The Dencun Upgrade?

EIP-4844 or Proto-Danksharding is called the new king of upgrades in the transaction type in Ethereum. It accepts “blobs” of data to be persisted in the beacon node for a short time. These data blobs are said to be a new milestone towards the full Ethereum data sharding This change can be an important factor in scaling the roadmap of Ethereum and keeping the disk use manageable. 

Technically speaking, these blobs are the vectors of data made up of 4096 field elements, each being 32 bytes in size. They are made to create succinct cryptographic references to them that are found in blob-carrying transactions to represent polynomials.

After implementing EIP-4844, Ethereum can free up its processing capacity, streamline operations, and enable rollups to handle transactions at a much lower cost.  

Ethereum’s Price Soars Action And The Expected Bullish Storm

After making waves in the crypto market over the past few days, the Ethereum price point is seeing an electrifying rebound. Ethereum’s price has soared over $2500 after SEC’s approval of the spot Bitcoin ETF. The improving market sentiments have also played a big role in skyrocketing the ETH price. 

Due to the consolidation between the  $2200 support and the $2400 resistance, a bullish flag pattern can be seen forming. This has hinted at further breakouts, growing buyers’ enthusiasm and reflecting a bullish pattern in 2024. The exponential moving averages have made analysts set their sights on a promising target, which is said to reach the 78.6% Fibonacci retracement level at $3,004.

The speculation regarding the approval of an Ethereum ETF and the recent green light in Bitcoin spot ETF have played an important role in acting as catalysts for Ethereum. This has potentially drawn a new wave of retail investment, leading to a bullish market pattern, which can be seen throughout the year in 2024.

Final Words 

We have discussed the possible reason for the Ethereum price soaring, and hopefully, you understand the situation better now. Ethereum is showing a bright future, and its potential is yet to be explored. The current Ethereum trajectory suggests that it is ready to maintain a significant presence in the digital world. Investors must remain careful and be aware that crypto investments are risky. It is better to do your research to prevent the danger of losing their money.