Ethereum Price Prediction as Dencun Upgrade Successfully Goes Live – Where Next for ETH?
The Ethereum (ETH) price is consolidating just below $4,000 and close to multi-year highs in wake of the successful implementation of the Dencun upgrade, that, amongst other things, is set to deliver a major boost to the Ethereum ecosystem via delivering a significant reduction in Ethereum layer-2 blockchain transaction fees.
The upgrade also paves the way for protodank sharding in the future, which will finally lower Ethereum’s high layer-1 fees.
BREAKING: Ethereum just had a hard fork! (Dencun)
this upgrade lowers layer 2 fee's by around 98% which is expected to indirectly reduce layer 1 fees as well
it also paves the way for protodank sharding in future upgrades, which will eventually make eth layer 1 a lot cheaper…
— Crypto Tea (@CryptoTea_) March 13, 2024
Assuming the latest upgrade does result in a drastic drop in layer-2 fees, blockchains such as Arbitrum and Optimism could attract significant amounts of new capital and users.
This is a clear positive for ETH. More layer-2 use translates into greater demand for Ethereum’s layer-1 blockchain as a settlement layer.
So why has the Ethereum price not been able to break out to fresh highs above $4,000?
Bitcoin (BTC) was able to print fresh record highs above $73,000 on Wednesday, after all.
The market has been becoming more bearish on spot Ethereum ETF approval in recent weeks.
Bloomberg’s ETF analysts recently stated they think the Ethereum ETFs only have a 35% chance of receiving approval by May.
Yeah our odds of eth ETF approval by May deadline are down to 35%. I get all the reasons they SHOULD approve it (and we personally believe they should) but all the signs/sources that were making us bullish 2.5mo out for btc spot are not there this time. Note: 35% isn't 0%, still…
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