Ether (ETH), the second most popular crypto on the market, is attracting the attention of investors with its exceptional performance. Like the bitcoin (BTC) it tracks, it achieved an all-time price high of $3,800. Here’s how analysts explain this rise in power.
The reasons for the surge in Ethereum’s native crypto
Like the price of bitcoin, ether is showing a remarkable rise in power. A dynamic which, according to the latest news, brought the crypto to a valuation of $3,800. An absolutely historic record.
While the question arises of knowing how the asset achieved such performance, Michael Van Pope, a well-known analyst in the crypto industry gave his opinion on the matter. In his opinion, the ether breakthrough is due to two factors.
The first is linked to the expectations surrounding Dencun. This is an upgrade that Ethereum should see soon. An update, which should resolve many of the platform’s challenges in terms of transaction fees, scalability and attractiveness.
The second element behind the rise in ether results from speculation around the possible approval of an Ethereum spot ETF. An option which should improve the accessibility of institutional investors to this crypto, like what we observe with Bitcoin ETFs.
An outbreak that is only just beginning?
Analyzing the dynamics of ether, Michael Van Pope highlights a certain robustness of Ethereum in relation to resistance levels. Likewise, crypto seems to exhibit relatively stable behavior compared to bitcoin.
Thus, according to the analyst, ether therefore demonstrates remarkable resilience. He managed to progress more consistently. This suggests that it appears to be in a strong position relative to bitcoin and the challenges of the crypto market generally.
Based on this observation, he believes that Ethereum is poised for further significant gains in the coming weeks and months. These would also be fueled by the Dencun upgrade and the possible approval of an Ethereum spot ETF.
Basically, this projection by Michael Van Pope is not new. At the beginning of February, he had notably anticipated an explosion in the market around Ethereum, driven, in addition to the two arguments previously mentioned, by a reallocation of profits from BTC to ETH.
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