This happened when the market for cryptocurrencies saw yet another positive leap, reaching a market capitalization of $2.7 trillion. But the rise was short-lived, as traders promptly cashed out, sending Ethereum's price plunging to $3,900.
The price movement of ETH is consistent with the market's overall bullish attitude. Even with all the hype, today's increase in Ethereum's trading volume was only 10%. This implies that investors with long investment horizons are opting to retain their holdings.
In addition, significant improvements have been made by Ethereum-based meme coins like Shiba Inu, with SHIB rising by more than 150% every week.
Part of the excitement around Ethereum stems from the expectation of the next Dencun update, which is scheduled to be live on Wednesday. If the update is done correctly, it should increase Ethereum's scalability and efficiency, which would raise the price of ETH even more.
This update is a significant development for Ethereum since it promises to solve some of the network's enduring problems.