Ethereum network activity growth supports the momentum, but excessive leverage in ETH futures poses a risk.
Ether (ETH) price has rallied 58% in the last 30 days, outperforming the broader cryptocurrency market by 14%. Despite failing to sustain levels above $4,000, Ether managed to reach its highest price in over two years, closing the gap versus the leading cryptocurrency, Bitcoin (BTC), in the period.
Some traders argue that Ether’s bull run has been solely dependent on the spot Ethereum exchange-traded fund (ETF) decision, creating a potential “sell the news” scenario if the event gets fully priced in, at least in the initial weeks. The U.S. Securities and Exchange Commission is expected to give its final verdict on the matter by May 23, with Bloomberg analysts pointing to approval odds at 35%.
Other factors have contributed to the recent price gains, including the Dencun network upgrade scheduled for March 13. The hard fork is expected to drastically reduce transaction fees of Ethereum network’s scaling solutions, a problem that has plagued the network for a long time. Specifically, the 7-day average Ethereum transaction fee has stood at $4 or higher since November 2023.
