ethereum was about 50% from its all-time high on February 8, but the latest technology upgrade known as Dencun could shoot eth higher, according to one analyst.
MN Trading founder and CEO Michaël van de Poppe opined that the second-largest asset in cryptocurrencies, Ether (eth), is “waking up” in terms of price movements and looks like it will soon rise by more than 50%.
Van de Poppe attributes this upcoming rise to Dencun, an update to ethereum's blockchain architecture designed to strengthen transaction capacity while increasing data availability.
People underestimate the importance of the Dencun upgrade on ethereum. If this is fully applied to the ecosystem, there is a good chance that ethereum will become the secure settlement layer that the ecosystem is looking for. Good signs that it launched on the final testnet.
michael van de poppefounder and CEO of MN Trading
eth changed hands for around $2,400 at press time according to CoinGecko, but van de Poppe predicted the price level could rise as high as $3,500. The cryptocurrency hit an all-time high at the peak of the bull run in 2021, reaching $4,878 per token.
ethereum Dencun Update
Proto-danksharding is the focal point of eth's Dencun upgrade, a feature enshrined in EIP-4844. eth developers have touted the plugin to benefit Layer 2 networks, especially by introducing an additional data field called a blob.
As crypto.news reported, this will allow L2s like Arbitrum, Optimism, and Polygon to access more transaction bandwidth without longer processing times on the eth mainnet.
Dencun is reportedly the biggest update since Shanghai enabled staked eth withdrawals following ethereum's evolution to a proof-of-stake model, also known as The Merge.
The developers have listed March 13 as the day Dencun ships, barring delays. The update was successfully deployed to major ethereum testnets including Goerli, Sepolia, and most recently Holesky.
Another catalyst that may contribute to the eth rally is the possible approval of an eth spot ETF. However, regulators at the U.S. Securities and Exchange Commission have delayed decisions until May, and individual commissioners have expressed differences of opinion on the asset class.
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