Ethereum Eyes Breakout in 2024: Dencun Upgrade, ETF Approval & Technicals Point to Upside

ETH ETF

Ethereum (ETH) is making strategic moves that could position it for significant growth in 2024. The recent Dencun upgrade tackled a major hurdle – high transaction fees – by introducing “blobs,” a new transaction type. This has already led to a significant drop in fees on popular layer-2 chains built on Ethereum, like Optimism and Arbitrum.

The Dencun upgrade doesn’t stop there. Over 3,000 blobs have been uploaded so far, potentially fostering healthy competition among builders, which could further drive down gas fees. This is a major win for users and developers alike, potentially boosting Ethereum’s overall appeal.

Spot ETF on the Horizon: Regulatory Approval in Sight?

Adding fuel to the fire, applications for a Spot Ethereum ETF are currently under review by the SEC. Grayscale and Coinbase recently met with regulators to advocate for approval. A successful application, expected in the coming months, could be a game-changer. It could reshape regulatory perspectives on crypto and pave the way for broader institutional adoption, potentially driving up the price of ETH.

Despite these positive developments, ETH currently sits below $4,000, a price point many analysts see as undervalued. This has led to speculation that once the Bitcoin rally settles, Ethereum could outperform its larger counterpart in 2024.

Also Read: Ethereum Upgrade Party: Polygon Hits 20-Day Active User High as Dencun Sparks Optimism (MATIC Up 4%)

Technical Analysis Hints at a Breakout

While consolidating near its support levels, ETH is showing signs of strength against Bitcoin. The weekly ETH/BTC chart reveals a rising RSI, suggesting Ethereum is gaining relative momentum. This could lead to a breakout from the current symmetrical triangle pattern, potentially triggering a significant price surge.

Short-Term Jitters, Long-Term Optimism

The current dip in ETH price can likely be attributed to the broader market’s recent focus on Bitcoin. However, as the Bitcoin rally stabilizes, analysts predict a potential surge for Ethereum, with a possible weekend push above $4,000.

With the Dencun upgrade, potential ETF approval, and technical indicators pointing towards a breakout, Ethereum is building a strong case for outperformance in 2024. While short-term fluctuations are inevitable, the long-term outlook for ETH appears bright.

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