ethereum price skyrocketed to a new 2024 peak above $3,740 on March 4. eth 2.0 Staking Trends Suggest Dencun Upgrade Could Lead to More Profits.
After surpassing the price of bitcoin (btc) in February 2024, ethereum bulls doubled their betting positions in the first week of March.
With anticipation of further upside following the Dencun upgrade, eth price looks set to make another attempt to reclaim $4,000 as the week progresses.
eth 2.0 Staking Deposits Pass $115 Billion Milestone
In early February, eth developers confirmed March 13 for the launch of the Dencun upgrade on the mainnet. The critical “proto-danksharding” feature is billed to reduce transaction costs on ethereum as well as ancillary Layer 2 networks.
ethereum price hit a new 2024 high of $3,743 on March 5, raising concerns that investors could start booking profits.
But with the Dencun upgrade now a week away, on-chain data from the eth 2.0 beacon chain shows that investors have maintained a bullish outlook by staking their coins rather than exiting at current historical prices.
Total staking deposits in the eth Proof of Stake (PoS) network exceeded 31.3 million eth and increased from 30,569,041 eth. This marks a major milestone as the total stake value has reached the $115 billion mark.
<img decoding="async" width="1024" height="323" src="https://crypto.news/app/uploads/2024/03/Screen-Shot-2024-03-05-at-1.25.30-PM-1024×323.png” alt=”ethereum 2.0 Beacon.chain staking deposits exceed $115 billion | March 2024″/>
Increasing deposits at stake creates positive traction for any proof-of-stake network. First, it improves network security and stability, which could be critical amidst euphoric online activity.
Secondly, it indicates that despite the high prices, eth investors are playing the long game, with great optimism surrounding the Dencun upgrade.
Overall, the fact that ethereum stakes are reaching $115 billion while prices are trending toward a 3-year high indicates an overwhelmingly positive conviction among investors that the network's upcoming improvements could further boost plus the rebound.
Forecast: Can ethereum Price Reach $4,000 Before Dencun Upgrade?
From data-driven insights from the betting trends discussed above, ethereum price currently appears poised for a further rise towards $4.0000 ahead of the Dencun upgrade scheduled for March 13.
First of all, eth has to establish constant support above $3,800. However, bulls must resist the wave of profit-taking from the final group of 8.7 million addresses that acquired 3.4 million eth when prices last hit $4,000 in 2021.
Breaking through this final resistance level could set the stage for eth price to advance towards its all-time highs above $4,000, as predicted.
On the downside, the bears could invalidate this eth price prediction by making another reversal below $3,000. But as seen last week, the buy wall in the $3,100 territory offers significant near-term support for eth price.
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