Ethereum Soars Above $3,500 Ahead of Dencun Upgrade

Ethereum (ETH) has surpassed the significant milestone of $3,500, propelled by optimistic market sentiment and excitement surrounding the impending Dencun network upgrade. The Ethereum Foundation has officially announced the Dencun upgrade, slated for implementation on the Ethereum mainnet come March 13, 2024. This upgrade aims to usher in substantial enhancements to both the consensus and execution layers of the network, with the potential to bolster scalability and alleviate transaction fees, particularly on Layer-2 solutions.

Comprising a suite of Ethereum Improvement Proposals (EIPs), including EIP-4844 for shard blob transactions, the upgrade is anticipated to notably diminish transaction costs. Although Ethereum users are not mandated to update their wallets, it is imperative for node operators to upgrade their clients to ensure seamless compatibility with the post-Dencun network. ETH has witnessed a recent surge, climbing over 6% in the past 24 hours and an impressive 17.7% over the preceding week. This bullish trajectory has translated into considerable profitability for both traders and investors alike.

Currently, over 93% of the total ETH supply is in a profitable state, echoing levels last witnessed in August 2021, during Ethereum’s peak. Long-term holders, often dubbed as "diamond hands," seem to be reaping more substantial gains compared to short-term traders, potentially indicative of their anticipation of further price appreciation.