Ethereum's recent price movement has been shaped by a mix of regulatory and technical factors. The ongoing regulatory scrutiny, highlighted by Coinbase's FOIA lawsuit against the SEC, has cast a shadow over Ethereum, particularly concerning its ETH 2.0 upgrade. This has led to heightened market activity and some initial price volatility. However, Ethereum's network has also seen positive developments, such as the increase in its gas limit, which is expected to improve transaction capacity and reduce congestion. These technical enhancements, along with the upcoming Pectra upgrade, have bolstered investor confidence in Ethereum's long-term scalability and functionality.
The Volatility Shares Trust 2x Ether ETF (ETHU) has responded to these dynamics, rising 2.81% to $4.76 as of 6:00 AM on Wednesday, February 5.