- Ethereum Price recovery syncs with the new ‘Dencun’ upgrade going live.
- Standard Chartered predicts Ethereum may reach $4,000 by May amid ETF expectations.
Ethereum, the second-largest cryptocurrency by market capitalization, showcased a notable recovery yesterday, breaking free from a two-week bearish trend. In the second week of January, ETH reached a 20-month high of $2,710 but dipped to $2,168 eight days ago. Despite the setback, ETH has experienced a 7% surge in the past seven days and is currently trading at $2,341.
This market rebound coincides with Ethereum’s ‘Dencun’ Upgrade, which went live on the second testnet. With only one remaining testnet, Holesky, scheduled for February 7, developers will soon finalize a date for Dencun to activate on the main blockchain.
Dencun represents Ethereum’s most significant upgrade since early 2023, going live on the Sepolia testnet on Thursday at 22:51 UTC and finalized at 23:10 UTC, bringing the much-anticipated “Dencun” project and its “proto-danksharding” feature a step closer to reality.
In addition to the upgrade, Ethereum enthusiasts received another piece of positive news. Standard Chartered Bank reported that Ethereum could surge nearly 70% from current levels, reaching $4,000 by May. The optimistic projection is based on the expectation that spot-based exchange-traded funds (ETFs) for Ethereum will likely gain regulatory approval in the U.S.
The analysts, led by Geoff Kendrick, anticipate that the U.S. Securities and Exchange Commission (SEC), following its approach with Bitcoin, will delay decisions on spot ETF applications until approved by the provisional day of May 23, coinciding with the final deadlines for applications by asset managers VanEck and Ark/21Shares.
Is The Rest Period Over For Ethereum Bulls?
As for the current market sentiment, recent movements suggest a renewed bullish trajectory on the daily chart, with the 9-day exponential moving average (EMA) positioned below the current trading price at $2,318. However, the daily relative strength index (RSI) indicates an almost oversold condition, standing at 49.
ETH Price Chart, Source: TradingView
If the price successfully surpasses the $2,401 resistance level, it is likely to test the $2,588 level. Conversely, a drop below $2,216 would likely lead to testing the $2,103 support level, with further declines possibly taking the price down to $2,046.
