Ethereum ETH Price: Surges Past $3,500 as Whales Switch BTC to ETH Ahead of Dencun
Ethereum powered 15% higher over the last week, reclaiming the critical $3,500 threshold for the first time since the beginnings of 2022’s crypto winter. The world’s preeminent smart contracts blockchain continues gathering upside momentum as the date for its Dencun upgrade emerges less than two weeks away.
TLDR
- Ethereum price tops $3,500, highest level since January 2022, gaining 15% in past week
- 91% of all ETH now in profit according to IntotheBlock data
- Upgrade named Dencun scheduled for March 13, will introduce “proto-danksharding” to improve speeds
- DeFi market value nears $100 billion, rebounding from crash-induced lows of $36 billion
- Whale conducts strategic BTC/ETH swap arbitrage around upgrade, pocketing $338K profit
According to CoinGecko, ETH hit $3,506 – buoyed by massive trading volumes over $16 billion in the last day. The strength has propelled total market value for the cryptocurrency above $416 billion.
Data from IntotheBlock highlights the breadth of the move, with 91% of the Ethereum market currently resting in profit. This figure represents all but 9% of ETH having appreciated against coin holders’ average cost basis. As buyers remain firmly in control, network activity and sentiment continue building ahead of the March 13th Dencun launch.
The upgrade centers on introducing “proto-danksharding”, which will drastically bolster transaction speeds and reduce congestion by enhancing layer 2 infrastructure. The changes will provide immediate relief on gas fee pain points that have hindered Ethereum scaling and mainstream adoption efforts.
Developers have been universal in trumpeting Dencun’s significance. Consensus is that by improving interoperability between Ethereum’s main chain and secondary channels, the sweeping upgrade constitutes a seminal moment for expanding functionality.
Market participants seem to agree, with ETH prices reacting sharply as the calendar counts down. In one recent display of confidence, an opportunistic whale executed strategic BTC/ETH swaps worth $5 million around the narrative.
The entity initially traded 1,500 ETH for about 88 BTC on February 26th when the exchange rate favored bitcoin. As sentiments switched leading into Dencun’s launch, the investor capitalized on flipping positions – redeeming the 88 BTC for 1,600 ETH to capture nearly $340,000 profits.
A smart whale changed from bullish on $BTC to bullish on $ETH!
He swapped 1,500 $ETH for 88.68 $WBTC($4.58M) at 0.05913 on Feb 26 to short the ETH/BTC pair.
Then swapped 88.68 $WBTC for 1,597 $ETH($5.57M) at 0.05554 today, making 97 $ETH($338K).https://t.co/ADQzYPd4pj pic.twitter.com/MhAZBwEv4w
— Lookonchain (@lookonchain) March 4, 2024
Such arbitrage maneuvers display investors maneuvering around potential catalyst events. The whale’s actions in securing extra ETH exposure pre-upgrade shows conviction Dencun will prove a springboard for further evaluating gains.
Adding fuel, the Ethereum ecosystem now supports nearly $100 billion total value locked across its DeFi landscape. The surge follows the Terra-induced decimation of unstable yield protocols.
But with sounder fundamentals reinstated, ETH seems on an inevitable path to $4,000 in short order between strengthening network effects and its revolutionary tech roadmap.
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