Ethereum Nears $5,000 on Spot ETH ETFs & Dencun Upgrade
Ethereum price is closing in on its 2021 high of $4,878 and eyeing the $5,000 milestone. The launch of eight spot ETH ETFs in July 2024 triggered over $1 billion in first-day trading volume and $108 million in net inflows, forcing issuers to buy real ETH on exchanges. The March 2024 Dencun hard fork introduced EIP-4844 proto-danksharding, cutting Layer-2 fees and boosting transaction speed. Broader crypto momentum—driven by Bitcoin’s rally and easing macro conditions—has supported Ethereum price alongside other top assets. Meanwhile, filings by VanEck and 21Shares for US spot SOL ETFs hint at a potential Solana ETF wave, though approval and liquidity will determine its impact. Traders should monitor ETF flow reversals, network risks and regulatory shifts that could spark volatility.
Bullish
The combined news highlights strong bullish catalysts for ETH price. In the short term, large net inflows into spot ETH ETFs and record trading volumes drive buying pressure, supported by Bitcoin’s rally. The Dencun upgrade’s fee reductions and speed improvements strengthen network fundamentals, underpinning long-term demand. Potential approval of spot SOL ETFs adds a template for further ETF-driven altcoin rallies. While ETF reversals, network issues and regulatory changes pose risks, the dominant momentum and institutional interest point to a positive price outlook for Ethereum.