Ethereum Price Rally : ETH Price Poised To Hit $2800 By Weekend

On January 10, 2024, the SEC approved all Bitcoin Spot ETFs. The first regulated spot, Bitcoin Exchange-traded-funds (ETF), was approved by the SEC a few hours after its fake release, causing $300 Million in Bitcoin liquidation within a few hours. 

ETF Approval, Opens ETH Gateways to $2800!

On top of this huge development, Ethereum (ETH) is currently exhibiting notable strength, surpassing Bitcoin’s performance with an 8% surge, driven by the mounting anticipation surrounding the potential approval of spot Bitcoin Exchange Traded Funds (ETFs).

Now that the outcome of Bitcoin ETF approvals is out, there is a growing expectation from analysts that Ethereum might experience a similar trend. Numerous institutions have already submitted applications for spot Ethereum ETFs, contributing to a supply shock as funds pour into the Ethereum market in anticipation of a potential ETF launch.

ETH’s price action shows a bullish flag pattern due to consolidation between $2200 support and $2400 resistance. Buyer enthusiasm rises as Ethereum breaks out, suggesting a bullish 2024.

So, what’s the deal? Is this correction a dip you should buy? Will Ethereum go up?

Technical, On-Chain Metrics Say’s Possible but with a Twist…

Technically, Ethereum’s price is navigating within an ascending parallel channel, indicating a bullish stance and the possibility of reclaiming the $2,457 range high. This upward momentum could propel ETH towards the $2,800 level, marking a substantial 15% increase from its current levels. In an exceptionally bullish scenario, Ethereum might even reach the $3000, indicating a 25% surge.

Supporting this optimistic outlook are various on-chain metrics. Santiment’s daily active addresses metric reveals a consistent increase in crowd interaction with Ethereum, reflected in the rise of daily active addresses from 387,000 to 413,000 in under a month—a 6.7% growth. Additionally, whale transactions involving transfers of $100,000 and above have experienced a notable uptick, underlining heightened investor interest.

However, it’s crucial to acknowledge the potential for correction, especially if bears take control. A downside correction could lead to ETH losing support at $2,388. In a more adverse scenario, a prolonged decline might push the proof-of-stake (PoS) token down to $2,135, signaling a potential shift in the prevailing bullish sentiment if a lower low is established. Overall, Ethereum’s current dynamics are intricately tied to the broader market sentiment and developments surrounding Bitcoin ETF approvals.