With its market value, Ethereum (ETH), the largest altcoin, has recently made a strong move and managed to surpass the $2,600 level. This rise has taken ETH’s weekly gains above 15%. This activity has led to increased rally expectations for ETH.
ETH’s Price Climbs to $3,500
Analysts have been expecting a strong price rally for Ethereum in 2024. According to them, the recent price breakout has unlocked the door to $3,500 for ETH. Experienced cryptocurrency analyst Michael van de Poppe said in his latest assessment for the altcoin king, “Wait until Ethereum starts to gain momentum. It recently turned $2,150 into support and is now waiting to break towards the $3,500 level.”
Since June 2022, Ethereum’s price has continued its uptrend, marked by the formation of two rising trough levels indicated with green symbols. After each of these trough levels, the pace of the rise seems to increase.
In November 2023, Ethereum’s price broke out of the horizontal resistance level it had been trading within for a long time. This breakthrough led to reaching the year’s highest level of $2,717 in January 2024 by surpassing the 0.382 Fibonacci retracement resistance level. Although there was a brief decline afterward, ETH managed to rise above the Fibonacci resistance last week.
Currently, ETH’s weekly Relative Strength Index (RSI) presents a mixed picture. As is known, an RSI above 50 in an upward trend indicates an advantage for the bulls, while an RSI below 50 indicates the opposite. The recent price breakout for ETH signals that the bear market accumulation may have ended and that a move towards much higher levels may soon begin.
Race for a Spot Ethereum ETF Intensifies
Although the U.S. Securities and Exchange Commission (SEC) has indicated it is not inclined to approve a spot Ethereum ETF, major financial players continue to make moves in this area. Leading asset management firm Franklin Templeton joined top players like BlackRock and Ark Invest by applying to the SEC for a spot Ethereum ETF on February 12th.
Franklin Templeton’s ETF application reveals the company’s intent to offer an investment alternative similar to direct Ethereum investments. The ETF simplifies the process of buying, holding, and trading digital assets across multiple platforms. According to the application, the fund also includes a staking feature that allows for earning rewards through participation in the network’s consensus mechanism.
Recent developments indicate that Ethereum staking is also facing a healthy rise with participation exceeding 25%. The increasing participation in ETH staking is significant as it provides additional security to the Ethereum Blockchain. It is worth noting that the current Ethereum staking yield hovering around 3.5-4% is somewhat disappointing, especially when the safest instrument, the one-year U.S. Treasury bill, is currently offering a higher return.