Bullish Factors for Ethereum
Amid a bullish momentum in the cryptocurrency sector, Ethereum (ETH) has been performing well and investors are speculating whether it could reach five figures this year. Breaking through the psychologically important price level of $3,000 could give Ethereum the strength to continue further and potentially reach a new all-time high (ATH), possibly even reaching the $10,000 range.
The upcoming launch of Proto-Danksharding, also known as proposal EIP-4844, is an important factor that could contribute to Ethereum’s price increase. This new type of transaction on Ethereum allows for the persistence of data blobs in the beacon node for a short period of time. Additionally, the possible approval of an ETF by the SEC and the launch of EigenLayer and re-staking could also impact Ethereum’s price positively.
Ethereum’s deflationary tokenomics and the potential resurgence of the NFT craze are other factors that could drive up its value. According to Simon Dedic, CEO of Moonrock Capital, Ethereum is well-positioned for the next two years and has the potential to reach $10,000.
Ethereum Price Analysis
Currently trading at $2,934.6, Ethereum has experienced positive gains in the last 24 hours and across the previous seven days. Its monthly chart shows an accumulated increase of 21.87% as of February 21.
While Ethereum is in a strong position to increase its price significantly in the future, reaching $10,000 this year may be overly optimistic. Dedic believes that it may take up to two years for Ethereum to enter the five-figure range.
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