Key Points
- Ethereum’s price is nearing $2,400, fueled by anticipation for the upcoming Dencun upgrade.
- The Dencun upgrade has been launched on the Holesky testnet, marking the final phase of implementation.
- The upgrade is expected to improve the Ethereum network’s scalability and reduce transaction costs.
- Ethereum’s market value is on the rise, with a target of $3,500 set by analyst Michael van de Poppe.
- Despite bullish predictions, uncertainty surrounds the approval of spot Ethereum exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC).
The price of Ethereum (ETH) is approaching $2,400, driven by the anticipation surrounding the imminent Dencun upgrade.
The core developers of ETH have initiated the final phase of the upgrade’s implementation by launching it on the Holesky testnet.
An X post from Ethereum execution client Nethermind indicated that the Dencun upgrade was activated on Holesky around 6:35 am ET.
Developer Parithosh confirmed the completion hours later in another post.
Enhancements via Dencun Upgrade
The Dencun upgrade is set to introduce several key improvements to the Ethereum network.
Specifically, ETH community members can look forward to enhancements in the network’s scalability through proto-danksharding and a decrease in transaction costs.
These improvements will bolster network growth and scalability, thereby increasing the likelihood of adoption, particularly when compared to other cryptocurrency networks.
The new feature of proto-danksharding (EIP-4844) introduces “blobs” to the network, which allow Ethereum nodes to temporarily store and access a large volume of off-chain data, thereby reducing storage needs.
Ethereum Market Outlook
As per CoinMarketCap data, ETH is currently trading at $2,371, having risen by 3% in seven days and more than 2% in the last 24 hours.
Renowned crypto analyst Michael van de Poppe has set a bullish target of $3,500 for ETH, attributing the surge to the focus on the Dencun upgrade.
Despite van de Poppe’s optimistic outlook, the situation around the approval of spot ETH exchange-traded funds (ETFs) introduces some uncertainty.
Several prospective issuers have submitted applications to the United States Securities and Exchange Commission (SEC) for the approval of spot ETH ETF, but the SEC has shown reluctance.
In a media briefing last month, SEC Chair Gary Gensler noted that the approval of spot Bitcoin ETFs is only applicable to Bitcoin.
Gensler stated that this approval should not be taken to imply broader implications, especially for other digital assets.
Recently, the SEC postponed its decision on the proposed ETH ETF application submitted by Galaxy Digital and Invesco.
Last December, the Commission announced a delay and is now instituting proceedings to decide whether to approve the application, according to an official filing.
Just last month, the SEC delayed BlackRock’s application, stating that it needs more time to consider the proposal and all issues raised.
In the same month, the Commission also delayed applications from Grayscale and Fidelity.
