ETH exchange rate has pierced USD 3,000

This article discusses the rise of Ethereum, which has surpassed the $3,000 mark. It also mentions the possible impact of the emergence of ETFs on Ethereum, changes in the way ETH is issued and its move to Proof of Stake, making it a deflationary currency. It considers the scenario of a possible further rise in the price of Ethereum, backed by factors from both ETFs and other fundamental aspects of the cryptocurrency market.
There has been a lot going on in the cryptocurrency market recently. The ETH exchange rate has risen and pierced USD 3,000. The digital currency is currently struggling to maintain this level.

ETH exchange rate moves northwards

The Ethereum cryptocurrency is getting more expensive. It currently costs an equal USD 3,000, which means that over the last 24 hours its exchange rate has risen by just over 2%. On a weekly basis, we are already talking about a 13 per cent increase.
The above translates into sentiment. The Ethereum Fear and Greed Index is as high as 81, indicating extreme greed among investors (Extreme Greed).

Bitcoin does not fare well against this backdrop. 1 BTC costs USD 51 900, which means that one coin a week ago was paid 4% more than today. Yesterday, the price was about the same.

The reason for the increases? Is the market waiting for an ether ETF?

It is currently unclear whether spot ETH ETFs will be created, but there are many indications that the market may already be playing under this type of 'yes' from the Securities and Exchange Commission. If officials are to agree to the creation of such products, they will probably do so as early as May. Then March, April and part of May could be marked by increases.

And without ETFs, ether could get more expensive in the coming months. The reason? The general situation in the project network. The recent change in the way ETH is issued (switching from Proof of Work to Proof of Stake algorithm) has led to Ether now being a deflationary currency. Fewer new units of ETH are coming to market than are being 'put into the stake pools'. Supply is shrinking and demand is likely to increase in the coming months. The effect can only be to increase the price.
The above phenomenon may further amplify the 'effect of ETFs' that will buy Ether, further reducing the supply of this cryptocurrency in the market.
Let's also remember that further increases may ultimately also be driven by a more expensive bitcoin. Here, the reasons will be similar: purchases of ETFs and further halving. On top of all this, the Fed with its decision to cut interest rates may also come into play.