Dencun’s upcoming upgrade expected to fuel a rally towards $3,500
According to analyst Michaël van de Poppe, Ethereum (ETH) is showing signs of awakening and could experience a significant price rally of over 50%. Van de Poppe attributes this potential surge to the upcoming Dencun upgrade, which aims to enhance transaction capacity and data availability on Ethereum’s blockchain. Currently trading at around $2,400, van de Poppe predicts that ETH could reach as high as $3,500, with the cryptocurrency previously hitting an all-time high of $4,878 in 2021.
The Dencun upgrade focuses on proto-danksharding, a key feature of ETH’s development. By introducing a new data field called a blob, this upgrade is expected to benefit layer-2 networks like Arbitrum, Optimism, and Polygon by providing them with more transaction bandwidth without increasing processing timeframes on Ethereum’s main network. Seen as one of the most significant upgrades since the activation of staked ETH withdrawals, Dencun is scheduled to be launched on March 13, subject to any delays.
In addition to the Dencun upgrade, the potential approval of a spot ETH ETF could also contribute to ETH’s rally. However, regulatory decisions by the U.S. Securities and Exchange Commission have been delayed until May, with differing opinions among individual commissioners regarding this asset class.
