Ethereum price is on track for a weekly gain despite the ongoing challenges in the crypto industry after the CLARITY Act markup stalled. ETH was trading at $3,280 on Friday, up modestly from the year-to-date low of $2,623. The coin has formed a bullish chart pattern as billionaire Mike Novogratz hinted that the bill will be passed in the next two weeks.
Mike Novogratz Believes CLARITY Act Will Be Passed Soon
The main catalyst for the Ethereum price this week was the new developments on the CLARITY Act or the Market Structure Bill. This bill, which was expected to have a markup at the Senate on Thursday, was paused after facing opposition from Coinbase.
In a statement on Thursday, Mike Novogratz, the billionaire founder of Galaxy Digital, remained optimistic that the Senate would ultimately pass it soon. He noted that he had talked to over 10 senators on both sides of the isle, who are working in good faith to address the issues.
Novogratz reiterated this view in a CNBC interview on Friday, when he was talking about Galaxy’s expansion of its Helios data center project. He predicted that the delay was a negotiation tactic as different entities seek to get the best deal. As such, he sees the bill being passed in the next two weeks
Other top officials have expressed optimism that the bill will be passed soon. Robinhood has supported the bill because it will make it possible for it to offer staking solutions to its customers. Additionally, Ripple Labs’ Brad Garlinghouse said that the bill was better than none.
The Ethereum price is likely to do well if the bill passes, as it is the second-largest cryptocurrency in the world and its blockchain powers key industries, such as decentralized finance and real-world asset tokenization.
Meanwhile, Ethereum’s network activity is doing well, with the number of transactions and active users being in a strong uptrend..Additionally, the amount of ETH tokens being staked has jumped to a record high, helped by the ongoing staking by BitMine.
Ethereum Price Technical Analysis Points to a Surge
The weekly chart shows that ETH price has crawled back in the past few weeks, moving from a low of $2,670 in November to the current $3,280.
Ethereum is attempting to move above the 50-week Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has pointed upwards and is attempting to move above the neutral point at 50.
Additionally, it has formed an inverse head-and-shoulders pattern, which is a common bullish reversal sign.
Therefore, the most likely ETH price forecast is bullish, with the next key target being at $4,000. A jump above that level will point to more gains, potentially to the all-time high of $5,000.
The bullish outlook will be canceled if the token drops below the right shoulder at $2,670.