Ethereum may be preparing for a near-term rise towards $2,400! Here’s what you need to know
Ethereum’s trading pattern was bullish as Bitcoin’s trading was influenced by aggressive buying demand within the $43,000-$44,000 range, aiming to break the current consolidation. However, compared to Bitcoin, Ethereum has shown significant stability since the market downturn and numerous on-chain indicators are currently pointing to encouraging developments.
Whales Gain Confidence Amid ETH ETF Hype
There are compelling reasons to expect approval of a spot Ethereum (ETH) exchange-traded fund (ETF) imminently. First, the U.S. Securities and Exchange Commission’s approval of 11 spot Bitcoin (BTC) ETFs in January 2024 indicates a more cryptocurrency-friendly stance. Second, the classification of Ethereum as a commodity, a preference among experts and regulators such as the U.S. Commodity Futures Trading Commission, makes it a likely candidate for ETF approval due to deregulation.
Lastly, the high demand for a spot ETH ETF from both retail and institutional investors, as shown by a Bitwise Asset Management survey, further strengthens the chances of approval.
As a result, whales are increasingly interested in the price, with ETH likely to surge to $2,400 following Bitcoin’s bullish trend. On-chain data shows that large transactions have continued to increase this week, currently sitting at 4.8K. Additionally, recent Ethereum network data shows that Ethereum has re-entered a deflationary phase, with a notable $13 million worth of Ethereum (ETH) burned over the past 30 days.
This resulted in 74,933 ETH being removed by the network’s burn mechanism, reducing the net supply to 5,619 ETH, surpassing the 69,313 ETH minted during the same period. This deflationary trend will reduce the available supply of ETH, potentially triggering price increases, especially if demand remains stable or increases.
As whale interest increases and buying pressure surges at each support level, ETH price could be poised for a near-term surge, potentially challenging buyers’ patience near the $2,400 level.
What’s next for ETH price?
The bulls try to send the price above the moving average, but the sellers defend the resistance level strongly, resulting in multiple rejections. But buyers are actively defending this support. At the time of writing, the price of ETH is trading at $2,305, having surged more than 0.49% in the last 24 hours.
Currently, sellers are attempting to keep the price below these moving averages. If successful, it could mean that ETH price could consolidate within the $2,100-$2,400 range for some time. Near-flat moving averages and RSI near the midpoint also suggest a potential near-term consolidation.
However, with the high volatility in ETH price, it could rise to $2,400 in the short term, and if ETH price stays above that level, it could rise to $2,700-$2,900.
Bears could take advantage if the price fails to stay above $2,400. This could cause short positions to surge and market sentiment to plummet to support levels.