In the past 24 hours, Ethereum’s price experienced a surge, reaching $2,444. Two pivotal catalysts have been identified as the driving forces behind this uptrend, marking a significant chapter in Ethereum’s recent market dynamics.
Firstly, Ethereum’s Exchange Traded Fund (ETF) applicants, Ark Invest and 21Shares, made amendments to their Spot ETH filings. This move has ignited anticipation within the crypto community for a potential ETF approval, reminiscent of the impact seen with the approval of a Spot Bitcoin ETF by the SEC. Traders and holders alike are eyeing the possibility of a substantial influx of capital into Ethereum if an ETF approval materializes.
The second catalyst stems from the milestone reached in the staking arena. According to a tweet by Lido Finance, the supply of Ethereum tokens staked has now hit the 25% mark. This development holds significance as the staked supply essentially withdraws Ether from circulation, alleviating selling pressure on Ethereum.
Analyzing the current trend, Ethereum has been on an upward trajectory since January 23, forming higher highs and higher lows. The immediate resistance is identified at the 50% Fibonacci Retracement level of the decline between January 12 and 23, positioned at $2,440.09. A breakthrough beyond this point sets the stage for the next target at $2,500, with the 2024 high of $2,715.29 representing a potential 9% rally from the $2,500 mark.
When taking a look at the key indicators, Ethereum’s Relative Strength Index (RSI) registers at 58.07, consistently above the neutral level. The Moving Average Convergence/Divergence (MACD) indicator displays green bars, signaling ongoing momentum supporting ETH price gains.
The surge has also been in the amount of ETH deposited for staking in the Beacon Chain of Ethereum 2.0, which has increased from 786,000 in August 2023 to 885,000 as of November 10. This rise in staked ETH and the number of validators participating in the network is a positive development for the security and decentralization of the Ethereum 2.0 network. It indicates long-term stability and commitment from stakeholders towards the network.
However, a note of caution is sounded. A daily candlestick close below the support level at $2,267 could potentially disrupt the bullish momentum for Ethereum. In such a scenario, the coin might find support at the January 23 low of $2,164.89.
