Prominent cryptocurrency analyst Michael van de Poppe recently outlined three key factors that could signal a bullish phase for Ethereum, the second-largest cryptocurrency by market capitalization. One key factor he pointed to was Bitcoin’s current behavior.
The analyst pointed out that as a market leader, Bitcoin’s recent signs of bottoming often precede altcoin rebounds, suggesting that Ethereum may rise. Additionally, Van de Poppe highlighted growing expectations for spot Ethereum exchange-traded funds (ETFs).
Van de Poppe said the buzz around these spot ETFs is a significant catalyst that could drive Ethereum’s value in the coming weeks.
Additionally, Ethereum is on the cusp of rolling out a critical network upgrade. Designed to reduce transaction costs by up to 90%, these updates are expected to significantly increase the efficiency and scalability of the network.
Momentum towards $ETH It’s likely to arrive in the next few weeks.
argument:
– #bitcoin Bottoming out is the trigger for a new rally in altcoins.
– Ethereum spot ETF hype.
– Ethereum launches new upgrade, reducing costs by 90%. pic.twitter.com/N8bDi52F8M— Michael van der Poppe (@CryptoMichNL) January 25, 2024
Ethereum Deacon upgrade latest update
Regarding updates, Ethereum’s development team is making progress on the upcoming Dencun upgrade, a major “hard fork” designed to improve the efficiency of the blockchain.
Ethereum core developer Tim Beiko updated the community on the progress earlier today. Dencun incorporates “proto-danksharding” and aims to reduce transaction costs for layer 2 solutions, making Ethereum more accessible and affordable for users.
According to the developers, the upgrade is scheduled to be activated on the Sepolia testnet on January 30 and on the Holesky testnet on February 7, and if these tests are successful, the mainnet will be implemented later.
More testnet blobs will be launched soon.oO
Dencun will launch in Sepolia on January 30th and Holesky on February 7th. If you are running a node on either network, now is the time to update it!
Assuming both of these go well, the next one will be the mainnet ✅ https://t.co/QbEUACix2S
— timbeiko.eth ☀️ (@TimBeiko) January 25, 2024
The future is brighter
Despite these positive developments, Ethereum’s market performance reflects the overall bearish sentiment in the cryptocurrency market, led by Bitcoin. ETH has fallen 13.7% over the past week and is currently trading at $2,216.
However, analysts such as Van de Poppe urge caution, especially regarding the impact of Bitcoin spot ETFs. Despite possible selling pressure in the short term, Vanderpop remains optimistic about the long-term outlook.
The analyst said that the influx of new capital from different market players could push Bitcoin, and in turn Ethereum, to new heights.
The market needs a more accurate understanding of the impact of ETFs.
There is some selling pressure in the short term, but in the longer term there is a lot of new money flowing into the market from new players.
therefore, #bitcoin could push this cycle higher than we think.
— Michael van der Poppe (@CryptoMichNL) January 25, 2024
Featured images from Unsplash, charts from TradingView
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