Is it time for ETH beta rotation as Ethereum Dencun Upgrade and Ether ETF narratives catch steam?


  • Ethereum price is coiling up for a move north with abounding bullishness amid broader market optimism.
  • With Dencun upgrade and Ether ETF speculation, ETH could make it to the $4,000 psychological level.
  • The liquidity rotation could bode well for Ethereum betas  ARB, LDO, MANTA and Op, which are beginning to wake up.

All eyes remain peeled on Ethereum (ETH) price after Bitcoin price had its own day earlier this week when it recorded a new all-time high (ATH) at $69,324. While Ether’s all-time high of $4,868 remains a rather ambitious target for now, the $4,000 threshold may come sooner than expected with the right drivers. 

Also Read: Nearly $200 million in ETH burned as Ethereum gears up for Dencun upgrade

Bullish outlook among Ethereum holders

Ethereum (ETH) price is eyeing the $4,000 psychological level, a region last tested in January of 2022. Ether price could hit its target soon as two bullish fundamentals steer the Ethereum price.  

Ethereum holders are anticipating the two catalysts that are likely to drive an ETH price rally this cycle. The upcoming Cancun-Deneb (Dencun) Hard Fork and the SEC’s decision on the Spot Ethereum ETF are the two catalysts for the altcoin. 

The ETH price continues to increase as investors appear to be pricing in the positive effects of the upcoming Dencun upgrade and the possibility that the US Securities & Exchange Commission (SEC) approves exchange-traded funds (ETFs) that track Ether before the year is out.

With these two fundamentals at play, Ethereum betas are likely to benefit, potentially becoming the next sector category to explode. Already, some of them are waking up, including Arbitrum (ARB), Lido DAO (LDO), the Manta Network (MANTA) and Optimism (OP). The liquidity from the Ethereum market could spill over into these betas to inspire a surge in their prices.

In the meantime, data according to Token Terminal shows that the Ethereum network leads by far with $34.6 million on metrics of the top 25 projects in all market sectors based on daily cumulative fees. The Uniswap network follows at a distance with $6.3 million.

Market sectors daily cumulative fees

On metrics of active daily users, however, the Ethereum network does not fare so well, coming in at position seven after Bitcoin and Solana, respectively.  

Market sectors active users

Meanwhile, Ethereum price is edging close to the $4,000 psychological level after breaching the $3,900 milestone. At the time of writing, Ethereum price is trading for $3,924.

ETH/USDT 3-day chart, ARB/USDT 1-day chart, LDO/USDT 1-day chart, MANTA/USDT 1-day chart, OP/USDT 1-day chart

Ethereum development FAQs

After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.

A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.

EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.

Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Solana and XRP ETFs may be on the cards in 2025, Standard Chartered analyst says

Solana and XRP ETFs may be on the cards in 2025, Standard Chartered analyst says

Ethereum Exchange Traded Fund approval news has renewed optimism on Solana and XRP ETFs approval in 2025. Analysts at Standard Chartered believe more cryptocurrency ETFs may be approved next year, and these assets will not be classified as securities. 

More Solana News

Uniswap Price Forecast: UNI could be poised for 30% rally after month-long lull

Uniswap Price Forecast: UNI could be poised for 30% rally after month-long lull

Uniswap price has broken out of a 35-day consolidation this week, a sign of a possible rally ahead that could increase the token’s price around 30%. Technical indicators support the bullish thesis, while on-chain data also aligns with it.

More Uniswap News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin, died early on Friday after losing her fight to leukemia and liver disease. Kabosu had gained popularity as the dog behind the viral “doge” meme. 

More Dogecoin News

XRP climbs past $0.53, SEC Chair Gensler says the agency has done very well in court cases

XRP climbs past $0.53, SEC Chair Gensler says the agency has done very well in court cases

Ripple lawsuit ruling is expected soon, following the new US crypto bill, FIT21. SEC Chair Gary Gensler says the agency has fared well in legal battles while speaking at the ICI 2024 Leadership Summit. 

More Ripple News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP