Ethereum Broke $4,000: Dencun A Catalyst To All-Time Highs?

Ethereum broke above $4,000 on March 11 before cooling off to spot rates. Overall, buyers are still in a commanding position. Therefore, while [[ETHUSD]] prices are slightly lower in the last trading day, the odds of the coin rallying and shaking off weakness remain elevated. 

ETH is up roughly 7% in the previous trading week. Because of the price contraction, the market cap is also lower by 0.61% when writing to $477 billion. However, what’s notable is the slump in trading volume. Even though it is relatively higher, rising to $24 billion, it is below the typical range, increasing by 8% on the last day. 

Buyers are optimistic about what lies ahead. The following events will likely influence ETH price action in the short term:

• Dencun is coming: Ethereum developers are looking to implement the proposal laid out in Dencun to scale and improve performance. With this hard fork, the network will process layer-2 transactions cheaply. Accordingly, more people will likely opt for layer-2 platforms to transact while benefiting from the security of the Ethereum mainnet.
• A prominent ETF analyst has reduced the chance of the United States Securities and Exchange Commission (SEC) approving a spot Ethereum ETF to 35%. Meanwhile, the commission remains silent on the product, which is a concern.

Ethereum Price Analysis

ETH buyers are in the driving seat, looking at the formation in the daily chart.

With immediate resistance capped at around $4,090, buyers must break above this level for the trend to continue. On the lower end, support lies at around $3,950. 

With bars along the upper BB and the middle BB ascending, every low might offer entries for bulls targeting $4,500.

On the other hand, a complete reversal of the March 11 bar, forcing ETH below $3,700, will mark $4,090 as the local peak.