Nearly $200 million worth of ETH has been burned as Ethereum prepares for the Dencun upgrade.

The price of ETH has surged over the past week as investors seem to be assessing the positive impacts of the upcoming Dencun upgrade and the possibility of the U.S. Securities and Exchange Commission (SEC) approving Ethereum exchange-traded funds (ETFs) tracking ETH prices this year. Meanwhile, on-chain data shows nearly 200 million dollars worth of ETH has been burned in the past week – another indicator suggesting prices will continue to rise as it reduces the circulating supply of this altcoin.

ETH holders are predicting two potential catalysts to drive prices higher in this cycle: the upcoming Hard Fork Cancun-Deneb (Dencun) and the SEC decision on Ethereum ETFs.

ETH is currently trading at $3,830 at the time of writing, up 1% on the day.

eth1 eth1

ETH has been burned in the past week | Source:

The surge in ETH price could be attributed to these catalysts. ETH’s price rise towards the psychologically significant target of $4,000 and beyond could be further fueled by the upcoming Dencun upgrade, a significant technical improvement aimed at addressing the scalability aspect of the “trilemma blockchain”.

The blockchain trilemma is the trade-off among three crucial aspects: security, scalability, and decentralization. Ethereum has prioritized decentralization and security, meaning scalability can be improved through upgrades and hard forks to this blockchain.

Observing on-chain data, some indicators also signal ETH’s price momentum. The circulating supply of this altcoin acts as an assessment of selling pressure on the asset, which is gradually diminishing. According to data from, 190 million dollars worth of ETH has been removed from circulation by burning tokens.

Analysis of the distribution of the supply among different groups of ETH holders also signals further potential for price increase. While holders of small wallets and retail investors (those holding from 10 to 10,000 ETH) have been reducing their holdings and likely making profits since the beginning of March, large wallet investors are adding ETH to their holdings. Typically, whale accumulation is a bullish sign for an asset and precedes a price hike, as seen in the chart below.

eth2 eth2

Distribution of ETH supply | Source: Santiment

eth3 eth3

Realized gains/losses on the Ethereum network | Source: Santiment

ETH holders are also awaiting the SEC decision on the potential approval of Ethereum ETFs. The U.S. regulatory agency has several registration filings under review, with the deadline for a decision set on May 23. Traders believe approval could spur institutional capital inflows and drive ETH profits, as seen with Bitcoin.

Leave a Reply

Your email address will not be published. Required fields are marked *

Chatbot AI D2