Ethereum price has climbed to a new 2024 high of $3,369 on Wednesday. Bitcoin’s rally to $59,000 and the upcoming Dencun upgrade activation on mainnet have likely catalyzed Ethereum’s price gains.
Also read: Ethereum price rally beyond $3,000 depends on two catalysts
Ethereum price rallied to $3,369 on Wednesday, on Binance. The altcoin has rallied to a new yearly high likely catalyzed by Bitcoin’s recent gains and the altcoin’s upcoming upgrade. Bitcoin price is inching closer to its $60,000 target, fueling bullish sentiment among market participants. Ethereum has enjoyed a close correlation with Bitcoin, at 0.92, according to data from Macroaxis.
The other catalyst is the altcoin’s upcoming Dencun upgrade. This is a key upgrade for Ethereum after the altcoin’s Merge - the transition from Proof-of-Work to Proof-of-Stake. Ethereum developers made an official announcement stating that the Dencun upgrade will go live on mainnet on March 13.
The Dencun upgrade has successfully cleared the testing phase and is ready for mainnet activation. This event has likely fueled anticipation among ETH holders, as the altcoin’s price continues its uptrend.
The event is expected to catalyze gains in Ethereum, pushing ETH price higher. With 26% of the Ethereum supply staked, and out of circulation, Ethereum price is likely to push higher in the coming weeks.
Ethereum price is in an uptrend, the altcoin is rallying towards it $4,000 target. Ethereum’s psychologically important price level is $3,000. The second largest asset by market capitalization has sustained above the $3,000 level and hit a new yearly high amidst catalysts like Bitcoin’s rally and the upcoming Dencun upgrade.
Ethereum price has support at the 23.6% Fibonacci retracement level of its rally to $3,369 at $3,086.
The Moving Average Convergence/ Divergence (MACD) and Awesome Oscillator (AO) supports Ethereum’s gains and suggests the uptrend is intact.
ETH/USDT 1-day chart
A daily candlestick close below the $3,000 level could invalidate the bullish thesis for Ethereum price. In the event of decline, the altcoin could find support at the 38.2% Fibonacci retracement level at $2,911.41.