Ethereum (ETH) has reached a two-year high, rising above $3,000 for the first time since April 2022. This significant increase puts ETH at the forefront of the cryptocurrency market, specifically as anticipation grows regarding the potential approval in the U.S. of a spot Ether exchange-traded fund (ETF). However, at press time, the ETH price was trading at $2,914 a 1.18% decline from the intra-day high.
Ethereum Price Rally Amid ETF Speculation
The surge of Ethereum price to more than $3,000 at the beginning of Tuesday morning underlines the 71% annual growth of the digital currency and showcases its capacity to outperform Bitcoin in 24-hour gains. Driven by the rising tide of the general crypto market, this rally has sparked a great deal of trader enthusiasm, with many pegging a target of $3500 in expectation of approval for an ETH ETF.
Concern is growing about the possibility of a spot Ether ETF, given the success of spot Bitcoin ETFs that have hit the market earlier this year. Several major financial companies, such as Fidelity, BlackRock, and Franklin Templeton, have submitted their application for an Ethereal ETF and have stirred the excitement for regulatory approval.
After the price of $ETH surpassed $3,000, an #Ethereum ICO participant woke up after 8.6 years of dormancy and deposited 1,732 $ETH($5.15M) to #Kraken.
He received 3,465 $ETH($10.3M) at #Ethereum Genesis, the ETH ICO price is ~$0.31.https://t.co/K6xOHILdne pic.twitter.com/o50JKxXxzP
— Lookonchain (@lookonchain) February 20, 2024
Adding to the mystery, a player in an Ethereum ICO who has been dormant for 8.6 years has emerged after the price surge and sent a large amount of ETH to the Kraken exchange. This action of long-standing silent market participants only adds to the increased activity and attraction toward Ethereum, which is shaking up the cryptocurrency space.
Technical and Market Sentiments
Technically, the Ethereum price dynamics are based on a strong market sentiment. The cryptocurrency rebounded from the short-lived drop at $2,937, suggesting substantial investor demand at the $3,000 level. Although the coin is beginning to show a sign of a short-term pullback, the general market sentiment is bullish, and traders and analysts are looking closely at the developing story of ETF approval.
#Ethereum price is moving in an ascending channel in the daily time frame. The price can grow up to the resistance level of $3500-$3920 and reach the ceiling of the ascending channel.
Support area: $1900 – $2120 pic.twitter.com/5iHR3Ooiu1— Technical Crypto Analyst (@TechCryptoAnlst) February 17, 2024
The larger context incorporates the increasing hype around the Dencun upgrade, scheduled for mid-March, to considerably improve the Ethereum network. The upgrade and the possible spot at Ether ETF make for a powerful story of Ethereum’s future path.
ETH’s Path Forward
As Ethereum strides towards establishing new benchmarks, the crypto community remains watchful of regulatory developments and network advancements.
The potential approval of a spot Ether ETF by the U.S. Securities and Exchange Commission (SEC) looms large, promising to usher in a new era of institutional participation and investment in Ethereum. However, the outcome remains uncertain with SEC Chair Gary Gensler’s cautious stance on cryptocurrencies other than Bitcoin.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/ethereum-price-surges-to-2-year-high-eyes-on-etf-approval/
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