Markets
Ethereum outperforms market, hitting $3,900 after ETF approval, Pectra upgrade in sight
Ethereum the price hit a two-month high of over $3,900, less than a week after the U.S. Securities and Exchange Commission (SEC). approved 19b-4 for eight spot exchange-traded funds (ETFs) linked to the digital asset.
This caps a week of positive performance for Ethereum, well outpacing the top 10 cryptocurrencies by market capitalization. During the reporting period, the value of ETH increased by approximately 27%, while Bitcoin saw a modest gain of 2%.
A new ATH?
Multiple Stakeholders Highlight How Spot Bitcoin ETFs Catalyzed a 70% Rally BTC price surge I believe ETH price could follow a similar trajectory towards a new all-time high.
Experts noted that the approval of the ETF showed that crypto had gained greater recognition as a viable financial asset class and would see more institutional adoption.
Executive Chairman of MicroStrategy Michael Saylor corroborated this view during a recent podcast appearance. According to him, the approval of an ETH ETF further legitimized the emerging industry, thereby encouraging institutions to allocate more capital to various digital assets. This comes after Saylor recently said that Ethereum ETFs would never be approved and that Ethereum was called a security.
In the meantime, Arthur Cheongfounder of DeFiance Capital, said ETH price could reach $4,500 before ETFs begin trading, as the asset is currently underrepresented in crypto wallets.
The banking giant JPMorgan has predicted that the ETF will launch before the US presidential elections.
Pectra Upgrade
Another major catalyst that would fuel ETH’s upward momentum is its upcoming Pectra upgrade, which major developers are planning to upgrade. launch during the first quarter of next year.
Pectra is the next major upgrade to Ethereum following the successful implementation of Dencun in March. The update aims to improve the Ethereum Virtual Machine (EVM) with the Ethereum Virtual Machine Object Format (EOF) and includes 11 improvement proposals.
Notably, the developers said they would replace account abstraction EIP-3074 with the more advanced EIP-7702, introduced by the co-founder of Ethereum Vitalik Buterin. EIP-7702 enables External Accounts (EOAs) to function as smart contract wallets during transactions, streamlining user experience and enhancing security.