Ethereum Inches Closer To $3,000 – Will February Deliver A $4,000 Knockout?
February 16 2024 - 2:30AM
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Ethereum (ETH), the global runner-up in the cryptocurrency ring, is
making serious moves this week, stepping closer to the coveted
$3,000 mark. Could this be the opening bell for a February
knockout, sending it soaring towards a staggering $4,000 finish by
month’s end? Related Reading: Stacks (STX) Stuns: Price Soars Over
60% In Epic Recovery As TVL Explodes Ethereum Staking And ETF
Surge: Bullish Momentum Several factors are fueling this bullish
sentiment, starting with the surging popularity of ETH staking. As
Ethereum 2.0 gathers momentum, more investors are locking their ETH
into staking contracts, earning passive income while reducing the
readily available supply in the market. This “induced market
scarcity,” as experts call it, creates upward pressure on the
price. Ethereum price up today. Source: Coingecko The numbers are
impressive: a whopping 25% of all circulating ETH, or 30.2 million
coins, are now locked in staking contracts. This represents a
significant surge of 600,000 ETH deposited between February 1st and
15th. And with an annualized reward rate of 4%, the incentive to
join the staking party is only growing stronger. Source:
BeaconChain But staking isn’t the only force propelling ETH
forward. The potential approval of an Ethereum Exchange-Traded Fund
(ETF) has also injected optimism into the market. Such a product
would make it easier for institutional investors to enter the
crypto space, potentially leading to significant inflows and price
appreciation. Ethereum currently trading at $2,839 on the 24-hour
chart: TradingView.com Furthermore, the recent Dencun upgrade on
the Sepolia testnet, promising improved network performance and
lower transaction costs, has been met with positive reactions from
stakeholders. This could attract more developers and users to the
Ethereum DeFi ecosystem, boosting its utility and ultimately
driving demand for ETH. Obstacles Ahead: ETH’s Journey Towards
$4,000 However, the path to $4,000 isn’t without its obstacles. A
major resistance level looms at $2,850, where approximately 1.23
million addresses, holding a combined 578,000 ETH, bought in. These
holders might be tempted to take profits as the price approaches
their break-even point, creating a temporary hurdle. Additionally,
a price dip below $2,500 could trigger panic selling among
investors who bought at higher prices. While some experts suggest
that such a scenario might be mitigated by “frantic last-minute
purchases” to avoid losses, it underscores the inherent volatility
of the cryptocurrency market. ETH price forecast. Source:
IntoTheBlock IntoTheBlock’s global in/out of the money (GIOM) data
further emphasizes this point. This data groups all existing ETH
holders based on their historical buy-in prices. According to GIOM,
the cluster of holders at the $2,850 resistance level represents a
potential selling pressure. However, if the bulls can overcome this
hurdle, another leg-up towards $3,000 and beyond becomes more
likely. Related Reading: Bitcoin Hits $52,000-Plus, Explodes Over
21% For 2024 – Details Ultimately, while the short-term outlook for
ETH seems promising, caution remains key. Investors should
carefully consider their own risk tolerance and conduct thorough
research before making any investment decisions. As with any
market, past performance is not necessarily indicative of future
results. The next few days or weeks will be crucial in determining
whether ETH can break through the $2,850 resistance and continue
its ascent towards $3,000 and beyond. Featured image from Adobe
Stock, chart from TradingView
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