{"id":252194,"date":"2024-02-22T18:51:21","date_gmt":"2024-02-22T13:21:21","guid":{"rendered":"https:\/\/dripp.zone\/news\/4-factors-that-could-push-eth-to-4000-in-march-crypto-news\/"},"modified":"2024-02-22T18:51:26","modified_gmt":"2024-02-22T13:21:26","slug":"4-factors-that-could-push-eth-to-4000-in-march-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/4-factors-that-could-push-eth-to-4000-in-march-crypto-news\/","title":{"rendered":"4 Factors That Could Push ETH To $4,000 In March – Crypto News"},"content":{"rendered":"

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Ethereum price, the second-largest cryptocurrency, clawed back some of the gains it accrued earlier this week, falling from slightly above $3,000 to $2,900. The pullback came upon increased volatility in the market, with\u00a0Bitcoin (BTC)<\/span><\/a>\u00a0rejecting $53,000 for a sweep at $50,500.<\/p>\n

Besides Ethereum, other altcoins such as Solana (SOL), XRP, and Cardano (ADA) also pulled back to gather more liquidity. This could account for the modest price gains in the market on Thursday.<\/p>\n

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Ethereum price is one of the most uniquely placed projects, considering its standing as the second-largest crypto, the largest smart contracts platform, and its upcoming Dencun upgrade.<\/p>\n

This article looks at these factors and more to determine the role they are likely to play in ETH\u2019s recovery journey in the short term.<\/p>\n

1. The Dencun Upgrade Scheduled For March<\/span><\/h2>\n

The\u00a0Dencun upgrade<\/span><\/a>\u00a0comprised of two separate upgrades \u201cDeneb\u201d and \u201cCancun,\u201d is a major improvement for the Ethereum network that will increase its scalability and efficiency when implemented.<\/p>\n

It will introduce\u00a0proto-danksharding<\/span><\/a>, a feature that will reduce the cost of transactions on layer 2 solutions like Polygon and Arbitrum, which are faster and cheaper than the main chain. The upgrade has been tested on three testnets: Goerli, Sepolia, and Holesky.<\/p>\n

With the final launch expected in March 2024, Ethereum price is already showing signs of an incoming rally. The token surged to highs slightly above $3,000 this week, backing positive sentiment.<\/p>\n

2. The Spot ETF<\/h2>\n

The approval of the spot Bitcoin ETFs has been referred to as a major development for the cryptocurrency industry. In addition to validating Bitcoin as a global mature asset, ETFs allow traditional investors who are not interested in the complexities of crypto to get exposure to BTC.<\/p>\n

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Moreover, the move opened the door to fresh speculation regarding the approval of a spot Ethereum ETF. Two years after the approval of Bitcoin futures ETF, Ethereum got its futures ETF. Experts say that the wait could be much short-term for the spot ETF.<\/p>\n

Like Bitcoin the hype surrounding the ETF could be a major catalyst for Ethereum price in the coming months.<\/p>\n

Recommended:<\/b>\u00a0Ethereum Price Rally Gains Momentum for $4000, Here Why?<\/span><\/a><\/span><\/p>\n

3. Staking<\/h2>\n

Validators in the Ethereum ecosystem are required to stake at least 32 ETH. This condition significantly reduces the circulating supply. Ether becoming a PoS network through the Merge in 2022 allowed investors to freely stake and withdraw liquidity.<\/p>\n

Contrary to expectations, the transition to PoS made staking even more attractive to investors, who have so far locked in $46.65 billion worth of ETH in smart contracts, according to\u00a0Defi Llama<\/span><\/a>.<\/p>\n