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Ethereum is a decentralized platform enabling global value transfers using its native cryptocurrency, ether. It also supports smart contracts, enabling developers to create decentralized applications (DApps) and tokens. The current Ethereum price is $2,818.73, reflecting a 1.24% change in the last 24 hours, with a market capitalization of $339.35B. So far this year, Ethereum has experienced a 24.18% change in price.
The second-largest cryptocurrency by market capitalization, Ethereum (ETH), has risen beyond $2,830, indicating a strong upswing. This recovery is consistent with the rise in Bitcoin (BTC) and is the result of several factors contributing to a favorable attitude. Analysts have been upbeat about Ethereum's future, with high expectations for 2024 in particular. Currently, the focus shifts to the short-term forecasts for February and March.
Since June 2022, Ether (ETH), the leading altcoin, has gradually increased in price. Notably, on the weekly chart, its price has moved significantly away from the bottom range since the low of March 2023. In January 2024, ETH surged to a peak of $2,717 but then pulled back due to profit-taking. It has now set a new peak for 2024 at $2,867, with three large upward candles in the last four days.
The Relative Strength Index (RSI) is well above the neutral zone, indicating strong demand and price increase potential. Analyst Zsuirad Nezrok, albeit anonymously, predicts ETH could reach $3,000 by month's end, supported by the current favorable market trend. Furthermore, the Noblecoins community expects a notable return for altcoins, especially with Ethereum's surge, suggesting a positive outlook for ETH in the near term.
The price of Ethereum has seen a notable uptrend, surpassing the key $2,750 level. Ethereum bulls pushed the price above the $2,800 resistance zone, even reaching above $2,850 before encountering selling pressure. This resulted in the formation of a new multi-week high at $2,869. However, a downside correction occurred, similar to Bitcoin's movement.
During the correction, Ether dipped below $2,850, and the 23.6% Fibonacci retracement level of the recent upswing from the $2,728 swing low to the $2,869 high. Despite this, the crypto bull runs have remained active above $2,800, with Ethereum now trading above both $2,800 and the 100-hourly Simple Moving Average. Additionally, two bullish trend lines are forming, providing support at $2,825 and $2,780 on the hourly chart of ETH/USD.
Looking ahead, immediate resistance is seen near $2,880, followed by a major resistance level at $2,920. Further upside could lead to a test of the $2,940 resistance, above which the price may rise toward the crucial $3,000 level.
The bullish sentiment surrounding Ethereum (ETH) is being driven by several key factors, with one of the most prominent being the increasing popularity of ETH staking. As Ethereum 2.0 gains momentum, more investors are choosing to lock their ETH into staking contracts. This not only allows them to earn passive income but also reduces the available supply of ETH in the market, creating scarcity and driving up the price.
Approximately 25% of all circulating ETH, totaling 30.2 million coins, is locked in staking contracts. This represents a significant increase of 600,000 ETH deposited between February 1st and 15th alone. With an annualized reward rate of 4%, the incentive to stake ETH continues to grow stronger.
In addition to staking, the potential approval of an Ethereum Exchange-Traded Fund (ETF) is also contributing to the positive sentiment. Institutional investors would find it simpler to enter the crypto market with the help of an ETF, which would result in large inflows and price growth.
Furthermore, the recent Dencun upgrade on the Sepolia testnet, which promises improved network performance and lower transaction costs, has been well-received by stakeholders. This could attract more developers and users to the Ethereum DeFi ecosystem, increasing its utility and driving demand for ETH.
Additionally, investors who purchased at higher levels may panic and sell if the price drops below $2,500. While some experts suggest that this could be mitigated by last-minute purchases to avoid losses, it highlights the inherent volatility of the crypto price market.
In summary, while the short-term outlook for ETH appears promising, caution is advised. Before making any investing decisions, investors should evaluate their risk tolerance and carry out extensive due diligence. The next few days or weeks will be crucial in determining whether ETH can overcome the $2,850 resistance and continue its upward trend toward $3,000 and beyond.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
