Ethereum (ETH) price hits $3K for the first time since 2022

Ether’s price topped $3,000, a level not seen in more than 22 months.

Ether’s (ETH) price topped the $3,000 level on Feb. 20for the first time since April 2022.

Ether climbed from a price of $2,881 on Feb. 19, surging more than 4% in the last 24 hours and 74% over the last 12 months, to hit a year-to-date high at $3,000.97on Binance at 13:45 UTC, according to data from CoinMarketCap.

Ether’s price performance comes as the market awaits the possible approval of a spot Ether exchange-traded fund (ETF) by the United States Securities and Exchange Commission and the implementation of Ethereum Improvement Proposal (EIP) 4844 through the Dencun upgrade.

Current odds from Polymarket indicate a 45% likelihood of a spot Ether ETF approval by May 31.

Wealth management firm Bernstein recently suggested ETH may be the only other cryptocurrency to secure an ETF spot in the United States.

“Ethereum with its staking yield dynamics, environmentally friendly design, and institutional utility to build new financial markets, is well positioned for mainstream institutional adoption,” analysts Gautam Chhugani and Mahika Sapra reportedly wrote in a note on Feb. 19.

Meanwhile, Bloomberg’s Eric Balchunas forecasts a 70% chance of approval, suggesting a positive outlook for Ether ETFs amid regulatory delays.

Bloomberg ETF analyst Eric Balchunas said he expects a 70% chance of an Ethereum spot ETF being approved in May. The SEC needs to make approval decisions on multiple Ethereum spot ETF applications by the end of May, including VanEck, Ark 21Shares and Hashdex. Digital asset lawyer…

— Wu Blockchain (@WuBlockchain) January 11, 2024

The last time Ether traded above $3,000 was nearly 22 months ago, on May 4, 2022, when it reached a high of $2,966 before sinking into an extended bear market that took its price to $883 in June 2022.

ETH’s recent performance may also be connected to the network’s much-anticipated Dencun upgrade.

Ethereum’s Dencun upgrade, which is targeted for March 13, is expected to implement several EIPs, including EIP-4844, which introduces proto-danksharding. The upgrade simplifies the transaction process by storing some data off the blockchain, speeding up transactions and cutting costs.

Data from CoinGlass shows increasing open interest (OI) in Ether futures market racing a record $10.19 billion, which validates the current volatility in ETH’s price.

Many market participants expect the fresh round of bullish price action to continue amid any news surrounding a spot Ether ETF approval and a possible move in the wider crypto market.