Ether outperformed Bitcoin and other major crypto currencies on Tuesday and briefly traded above $3,000 before tracing back

Ether, the native crypto currency of the Ethereum network, has hit the $3,000 mark for the first time since April 2022, in what investors and market watchers are calling the arrival of “altcoin season.”

Altcoin season refers to a period when crypto currencies experience considerable increases in value compared to Bitcoin. This is often characterised by a surge in market interest, investment, and price rise of altcoins.

During an altcoin season, investors and traders may shift their attention from Bitcoin to altcoins in search of higher returns, driven by speculation, new project developments, or broader market trends.

Ether outperformed Bitcoin and other major crypto currencies on Tuesday and briefly traded above the $3,000 mark before tracing back. It traded at $2,918 at 6:30 pm GMT, as per CoinMarketCap data.

Ether is 10.8% higher for the week.

The rise has been attributed to the expectation of a potential approval for a spot-based Ether exchange traded fund by the U.S. Securities and Exchange Commission (SEC), which could attract more conventional and institutional investors.

The approval of a spot Ether exchange traded fund is expected to reflect the success of new Bitcoin exchange traded funds that debuted last month, which have already attracted significant allocations.

Apart from exchange traded fund speculation, Ethereum’s upcoming network upgrade, known as the Dencun upgrade, is also contributing to the positive sentiment.

The upgrade, scheduled for March 13, aims to implement Ethereum Improvement Proposal (EIP) 4844, introducing proto-danksharding to simplify transactions and reduce costs by storing some data off the blockchain. This technical enhancement is anticipated to speed up transactions.