On Friday, March 8, the price of Ethereum increased by 5% and is approaching the $4,000 level.
Experts attribute this to the significant accumulation of Ethereum and market optimism ahead of the Dencun blockchain upgrade.
The cryptocommunity has seen an increase in Ethereum accumulation, which has sparked discussions about the future price rise of the cryptocurrency in the near future, CoinGape reported.
At the time of writing, the value of Ethereum has increased by more than 4% in the last 24 hours. The asset was trading at $3,942. The maximum reached was $3,958.81.
Over the past few days, Pulse Chain and Pulse X wallets have purchased a significant amount of ETH tokens in 163,295 ETH, totaling 620.7 million DAI, according to analytics platform Spot On Chain. The blockchain tracking platform has recorded a surge in Ethereum accumulation, providing a strong foundation for the token price spike.
Spot On Chain records all major on-net ETH purchases associated with Pulse Chain/X wallets. In the last 24 hours, 15,003 ETH have been purchased for 59 million DAI, for a total of 163,295 ETH in four days. This represents an average cryptocurrency price of $3,801 and an estimated unrealized profit of $24.3 million.
The rise in Ethereum's value is also influenced by the anticipation of the upcoming Dencum upgrade and hopes for the approval and launch of the Ethereum ETF. The upcoming Dencun upgrade is expected to revolutionize the ETH share proof-of-stake protocol on March 13, according to crypto experts.
Developers cite the upgrade's goal of eliminating congestion, increasing scalability, and reducing transit fees in multi-layer networks.
Anticipation of SEC approval of an Ethereum ETF is boosting investor confidence in the asset. Drawing an analogy to the Bitcoin ETF, market analysts are confident of an imminent Ethereum price rally.
According to CoinGlass, investor interest in Ethereum rose 3.71% to $13.25 billion. Meanwhile, open interest in Ethereum options also increased by 1.63% to $6.38 billion.
Against this backdrop, the outlook for the Ethereum market looks very optimistic.