Ethereum Hits $3,000 After Two Years, Three Reasons for Price Surge

Ethereum (ETH) price performed very strongly last week. This led to a new climax last night.

Ethereum price hit $3,000 last night for the first time since April 2022.

Ethereum hits $3,000 for the first time in two years

Ethereum started rising again last night, reaching $3,000 around midnight. A little later, the price reached a high of $3,030. This is the highest price in no less than 22 months.

However, the price did not move further last night and this morning Ethereum lost the $3,000 mark again. The price has just dropped sharply and has only reached $2,920.

The price has since recovered to $2,950 but now appears to be facing some resistance. Still, Ethereum is up 1.2% today and up 25% compared to two weeks ago.

3 reasons for Ethereum price rise

There are likely three reasons for Ethereum’s sharp price rise. The first is likely the recent rise in Bitcoin (BTC) due to the launch of the new Bitcoin spot exchange-traded funds (ETFs).

A sharply rising Bitcoin price tends to drag the rest of the market with it. Last week, many altcoins outperformed Bitcoin itself.

The second reason probably has to do with the ETFs mentioned above. The hype surrounding the possible approval of Ethereum spot ETFs is starting to take hold.

Many of the asset managers that launched a Bitcoin ETF last month are also lining up an Ethereum ETF. According to data from PolyMarket, 47% of the market is currently betting on an Ethereum ETF to be approved in May.

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Recently, analysts at investment firm Bernstein said they estimate the likelihood of Ethereum ETFs being approved in May at 50%. ETF expert Erich Balchunas from Bloomberg even estimates the chance at 70%.

The third reason for the price increase may be the next major update to the Ethereum network.

It was recently announced that the next Ethereum update called “Dencun” will be released on March 13th. Dencun is introducing so-called “Proto-Dankharding,” which is intended to improve scaling and transaction costs on Ethereum, especially for Layer 2 networks.

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