Markets
Ethereum Outperforms Market Higher to $3,900 After ETF Approval, Pectra Upgrade Ahead
That of Ethereum the price rose to a two-month high of over $3900 less than a week after the US Securities and Exchange Commission (SEC) decision approved 19b-4 filings for eight digital asset-related spot exchange-traded funds (ETFs).
This caps a week of positive performance for Ethereum, significantly outperforming the top 10 cryptocurrencies by market capitalization. During the period under review, the value of ETH increased by approximately 27%, while Bitcoin saw a modest 2% gain.
New ATH?
Numerous stakeholders highlight how Bitcoin spot ETFs have catalyzed a 70% increase BTC price increase they believe that ETH price could follow a similar trajectory towards a new all-time high.
Experts noted that the ETF approval showed that cryptocurrencies have gained greater recognition as a viable financial asset class and will witness more of it institutional adoption.
Executive Chairman of MicroStrategy Michael Saylor confirmed this view during a recent podcast appearance. According to him, the approval of an ETH ETF has further legitimized the emerging sector, thus encouraging institutions to allocate more capital to various digital assets. This comes after Saylor recently stated that Ethereum ETFs would never be approved and that Ethereum had been labeled a stock.
In the meantime, Arthur Cheongfounder of DeFiance Capital, She said The price of ETH could reach $4,500 before ETFs start trading because the asset is currently underrepresented in crypto portfolios.
Banking giant JPMorgan did it expected which the ETF will launch before the US presidential elections.
Petra update
Another major catalyst that would fuel ETH’s bullish momentum is its upcoming Pectra upgrade, which the lead developers plan to make launch during the first quarter of next year.
Pectra is Ethereum’s next major update following the successful implementation of Dencún in March. The update aims to improve the Ethereum Virtual Machine (EVM) with the Ethereum Virtual Machine Object Format (EOF) and includes 11 improvement proposals.
Notably, the developers said they would replace account abstraction EIP-3074 with the more advanced EIP-7702, introduced by the co-founder of Ethereum Vitalik Buterin. The EIP-7702 allows Externally Owned Accounts (EOAs) to function as smart contract wallets during transactions, simplifying the user experience and increasing security.