The digital asset market is poised for another surge. Cryptocurrency exchange Coinbase anticipates that Ethereum may "have the potential to surprise in the coming months." 

According to Coinbase experts, the second-largest cryptocurrency is likely to gain strong upside momentum in the face of virtually no pressure factors.

The upcoming decision from the US Securities and Exchange Commission on VanEck's spot Ethereum ETF application, expected by May 23, could be a potential growth driver for the digital asset. There is a high probability that the initial application will face rejection. However, subsequent legal battles could reverse the ban, paving the way for the launch of ETH exchange-traded funds.

Coinbase is confident in Ethereum’s medium-term rally regardless of the ETF approval. The cryptocurrency is likely to be buoyed by growing demand for decentralized services contributing to the digital asset's appreciation, the company said.

Earlier, experts at CryptoQuant noted that the Dencun network ushering another phase in the ETH roadmap resulted in a nearly fourfold reduction in transaction fees, thus reversing Ethereum’s status as a deflationary asset and driving it up.