Key Insights into Ether’s Market Performance
Ether (ETH), the second largest cryptocurrency by market capitalization, experienced a more than 5% decline in early trading on Friday following the completion of Ethereum’s Dencun upgrade. Here are some key points to consider:
Impact of Dencun Upgrade on Ether
- The successful implementation of the Dencun upgrade on the Ethereum network has contributed to a bearish trend in Ether’s price.
- This upgrade, designed to enhance the cost-effectiveness of the Ethereum ecosystem, has generated positive sentiment among investors, propelling Ether above the $4,000 mark earlier in the week.
- Richard Meissner, co-founder of Safe, highlighted that Dencun will revolutionize the development of smart contracts on Ethereum, leading to more secure and user-friendly applications.
Expectations of an Ether ETF Approval
- Investors are eagerly awaiting the SEC’s decision on BlackRock’s Ether ETF application filed on May 23. However, Bloomberg ETF analysts estimate the likelihood of approval by that date to be only 30%.
- The potential approval of an Ether ETF, coupled with record inflows into Bitcoin ETFs, has contributed to the positive momentum surrounding Ether.
Technical Analysis and Price Levels
- Despite recent bullish factors, Ether may face resistance as indicated by the pricing of put options relative to call options.
- The current uptrend in Ether’s price began in late October last year and gained momentum with the formation of a bullish golden cross chart pattern.
- Key Fibonacci retracement levels, such as the 38.2% level at $3,365 and the 50% level at $3,135, could serve as potential support zones amidst selling pressure.
As of early morning, Ether was trading at $3,665.
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