Over the past month, Ethereum has seen a significant increase in value, with approximately $583.94 million worth of the cryptocurrency being burned. This reduction in Ethereum’s circulating supply has contributed to the recent gains in its price. Recently, Ethereum reached a new record high of $4,012 on popular cryptocurrency exchanges like Binance, just before the upcoming Dencun upgrade.
Investors are eagerly anticipating the Dencun upgrade, which is considered one of Ethereum’s most important developments since its transition to a Proof-of-Stake consensus mechanism. This upgrade is expected to introduce proto-dank sharding, a significant improvement that will be included in the Dencun Hard Fork scheduled for March 13.
Recent data from ultrasound. Money reveals that a substantial amount of Ether has been burned in the past thirty days. This burning process is crucial for Ethereum holders as it reduces the overall circulating supply of the cryptocurrency, ultimately alleviating selling pressure on Ether.
Bullish developments in the cryptocurrency market further support the positive momentum in Ethereum’s price. Analysts predict Ethereum’s next target could be the $5,000 mark, close to its peak of $4,936 in December 2021. Technical indicators such as the Moving Average Convergence/ Divergence (MACD) and the Awesome Oscillator (AO) suggest that Ethereum may experience further price increases shortly.
However, it’s important to note that a daily candlestick close below the 38.2% Fibonacci retracement level, currently at $3,307, could invalidate the bullish outlook for Ethereum. In such a scenario, the cryptocurrency may find support around the $3,000 mark.
