Ether’s price has been steadily climbing over the past ten days, marking a gain of 21.5% and edging close to the £2,800 mark.
This surge in the cryptocurrency’s value is attributed to the robust inflow into the recently introduced spot Bitcoin exchange-traded fund (ETF) in the United States.
However, Ether possesses additional catalysts that could potentially propel its price beyond the £3,000 threshold—a level that left its mark during its last trial in March 2022.
Will Ether’s anticipated ascent to £3,000 unfold differently this time?
From an optimistic standpoint, Ether may solidify its position as the second cryptocurrency with a spot ETF listed on US exchanges.
This would set it apart from rivals like Solana and BNB Chain in terms of accessibility and regulation. US exchanges, including Binance and Coinbase, are still entangled in legal battles with the US Securities and Exchange Commission (SEC) concerning security offerings.
Hence, approval of an Ethereum ETF in the US would notably reduce uncertainty for its investors.
Other factors bolstering Ether’s prospects include the forthcoming Dencun network upgrade slated for March 13.
This hard fork aims to, among other objectives, slash transaction costs on the Ethereum layer 2.
By providing more block space and lowering gas costs for rollups, these modifications could potentially stimulate the usage of its decentralized applications (DApps) and escalate deposits in its smart contracts, thereby driving up demand for ETH.
READ MORE: Bitcoin Holds Ground at $52,000 Amidst US Inflation Concerns
Ether bulls have ample grounds to believe that £3,000 is within grasp, but historical evidence underscores the challenge of sustaining such price levels.
For instance, in the three weeks leading up to April 3, 2022, ETH surged by 42%, soaring from £2,520 to £3,580.
However, the rally proved unsustainable as its price plummeted by 46% in the subsequent 40 days. Traders now question whether Ether could encounter a similar fate this time around.
The first indicator to scrutinise is Ether’s futures premium, which reflects the demand for leverage between longs (buyers) and shorts (sellers).
Professional traders favour monthly futures contracts due to the absence of a variable funding rate, but these instruments typically trade at a 5% to 10% premium to compensate for their extended settlement period.
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