#Eth Ethereum (ETH) has achieved a significant milestone by reaching $4,000 for the first time since 2021, marking a new multiyear high.
The price of Ether climbed from $3,873 on March 8, experiencing a 4% surge in the last 24 hours and a remarkable 74% year-to-date increase, ultimately reaching $4,003 on Bitstamp, as reported by CoinMarketCap.
The surge in Ether's price is attributed to several factors, including the anticipation of Ethereum's upcoming Dencun update and the potential approval of a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC).
The Ethereum community has eagerly awaited the Dencun upgrade, a significant improvement to the network introducing Ethereum Improvement Proposals (EIPs) like EIP-4844, which introduces "proto-danksharding." This feature aims to simplify transactions by utilizing blobs, storing some data off the blockchain, and accelerating transactions while reducing costs for layer-2 chains and rollups dependent on Ethereum.
Furthermore, market participants are optimistic about the SEC approving one of the numerous spot Ether ETF applications, despite the regulator's decision delay on applications from BlackRock and Fidelity.
The SEC is expected to announce decisions on all spot Ether ETF applications simultaneously, similar to its approach with Bitcoin ETFs on January 10.
Drawing from the success of spot Bitcoin ETFs since their launch on January 11, a spot Ether ETF is anticipated to attract additional capital into the second-largest cryptocurrency by market capitalization.
Institutional investors may increase their exposure to Ether as attention shifts from Bitcoin's recent all-time high, leading to potential price rallies for Ether.
It's essential to note that this information does not provide investment advice, and readers are encouraged to conduct their research before making any financial decisions. Every investment and trading move involves risk.
