Crypto News: Ethereum has been on a remarkable trajectory, with its price surging to new highs in recent weeks. In this article, we delve into the various cryptocurrency market scenarios driving Ethereum's price action, examine the activities of prominent ETH whales, and conduct a technical analysis to gauge whether ETH is poised to reach the $3.5k mark.
Ethereum is currently priced at US$2,927.4, experiencing a slight 0.02% increase in the last 24 hours. This recent price movement has propelled Ethereum's market capitalization to US$351.77 billion. Year-to-date, Ethereum has seen a significant surge of 28.45%.
The recent surge in the crypto price has been partly fueled by speculation surrounding the potential approval of a spot Ethereum exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). Despite no concrete regulatory developments, a report from Bernstein has stirred investor sentiment, suggesting a 50% chance of approval by May and near certainty within a year.
However, concerns have been raised regarding Coinbase's potential dominance as an ETF custodian and its impact on Ethereum's proof-of-stake model. With Coinbase holding a significant portion of all ETH staking, questions arise about potential network control. Furthermore, uncertainty looms over whether the SEC will allow staking of ETH held in spot Ethereum ETFs, despite some applicants aiming to do so.
Anticipation also surrounds Ethereum's upcoming Dencun upgrade, scheduled for March 13, which promises to introduce proto-danksharding, enhancing transaction costs and scalability.
Notable ETH whales have attracted attention with their significant transactions preceding the recent price surge. Data reveals a whale accumulating ETH since February 8, amassing a substantial amount before realizing a profit of US$100 million. This behavior is typical among ETH whales, who accumulate coins during price surges.
One significant reason for whale accumulation could be the rising 30-day MVRV ratio, indicating that the accepted price of ETH is higher than the average purchase price. With ETH still trading over 40% below its all-time high, whales may continue buying activity in anticipation of further price increases.
Technically, Ethereum's price surged above the US$2,800 resistance level and is consolidating gains above the 55 simple moving average on the chart. A bullish trend line is forming with support near US$2,880. Immediate resistance lies near US$2,950, with a major hurdle at US$3,000.
A clear break above US$3,000 could pave the way for further gains towards US$3,120 or even US$3,200. Conversely, a downside correction might find initial support at US$2,880, with a crucial zone near US$2,850. A break below US$2,750 could trigger a larger decline towards US$2,640 and US$2,550 levels.
Conclusion:
In conclusion, Ethereum's price surge is driven by a combination of regulatory speculation, whale accumulation, and technical factors. The potential approval of a spot Ethereum ETF by the SEC and the upcoming Dencun upgrade add to the bullish sentiment surrounding ETH. With whales continuing their buying activity and technical indicators pointing towards further upside, Ethereum could be on track to reach the US$3.5k mark in the near term. However, investors should remain vigilant amidst regulatory uncertainties and potential market volatility.
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