Michael van de Poppe, founder and CEO of MN Trading, expressed optimism about the prospects for Ethereum (ETH), the second-largest cryptocurrency by market capitalization.
According to Van de Poppe, ETH is showing signs of a price revival and appears poised for a significant rally of over 50% soon.
Dencun upgrade fuels Ethereum momentum
Van de Poppe attributes the expected price increase to the upcoming Dencun upgrade, a pivotal enhancement to Ethereum’s blockchain architecture to enhance transaction capacity and data availability. This upgrade is expected to significantly improve ETH’s performance in the market.
At the time of writing, ETH was trading at around $2,400, according to data from CoinGecko. But Van de Poppe expects prices to rise to $3,500 in the short term. It is worth noting that Ethereum reached an all-time high of $4,878 at the peak of the 2021 bull market.
Main features of Dencun upgrade
The highlight of the Dencun upgrade is Protodunk Sharding, a key feature outlined in Ethereum Improvement Proposal (EIP) 4844.
This addition is expected to significantly enhance Layer 2 networks by introducing additional data fields called “blobs.” Developers expect this enhancement to allow Layer 2 solutions such as Arbitrum, Optimism, and Polygon to access greater transaction bandwidth without increasing processing time on Ethereum’s main network. Masu.
Dencun has been hailed as one of the most significant upgrades to Ethereum since the implementation of staked ETH withdrawals following the platform’s transition to a proof-of-stake consensus mechanism, commonly known as merging.
According to Crypto News, the introduction of the Dencun upgrade is scheduled for March 13th, pending unforeseen delays. It has been successfully tested on major Ethereum testnets including Goerli, Sepolia, and the recently added Holesky.
Potential Catalyst for Ethereum Rise
In addition to the Dencun upgrade, the approval of the Spot Ethereum Exchange Traded Fund (ETF) is another potential catalyst for ETH’s upward trajectory.
According to Coin Gape, regulatory bodies such as the U.S. Securities and Exchange Commission (SEC) have postponed their decisions until May.
Individual commissioners have expressed differing opinions on the classification and regulation of cryptocurrencies, adding uncertainty to the approval process. Nevertheless, the potential introduction of an ETH ETF could further strengthen Ethereum’s market performance in the coming months.
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