ETH bulls call for $3,000 as the next stop for Ether, but the altcoin corrected by 46% the last time it traded above this level.
Ether (ETH) price has been on an upward trend for the past 10 days, accumulating gains of 21.5% during this period as it flirts with the $2,800 level. The bullish momentum in cryptocurrencies is attributed to the strong inflow into the recently launched spot Bitcoin (BTC) exchange-traded fund (ETF) in the U.S. However, Ether has additional drivers that could potentially propel its price above $3,000—a level that left scars the last time it was tested in March 2022. Will Ether’s eventual rally to the $3,000 turn out differently this time?
From a bullish perspective, Ether could consolidate its vice-leadership as the second cryptocurrency to have its spot ETF listed on U.S. exchanges. This would distinguish it from competitors such as Solana (SOL) and BNB Chain (BNB) in terms of access and regulation. Exchanges, including Binance and Coinbase, are still facing lawsuits from the U.S. Securities and Exchange Commission (SEC) regarding security offerings. Therefore, an Ethereum ETF approval in the U.S. would significantly diminish uncertainty for its investors.
Other positive drivers for Ether include the Dencun network upgrade, expected on March 13. The hard fork aims, among other things, to reduce transaction costs on the Ethereum layer 2. By offering more block space and reducing gas costs for rollups, these changes could potentially boost the usage of its decentralized applications (DApps) and increase deposits in its smart contracts. This, in turn, translates to a higher demand for ETH.
