Ethereum (ETH) attracted attention with its impressive performance recently. ETH price surpassed the $2,600 level with a 6% increase and extended its weekly gain to over 15%. Predictions for 2024 show that the price will rise even further and may reach a value of $ 3,500.
Reasons Behind the Increase in Ethereum Price
Since June 2022, Ethereum price has been in a continuous uptrend. This trend is marked by two significant bottoms, and after each bottom the rate of price increase accelerates further. In November 2023, Ethereum’s price broke through a long-standing horizontal resistance level, which allowed for a peak of $2,717 in January 2024. Despite a brief decline, ETH managed to break through a key Fibonacci resistance level last week. Relative Strength Index (RSI) with a value above 50 indicates that the uptrend will continue. does.
Waiting game until #Ethereum starts to pick up pace.
Flipped the $2,150 level for support, currently waiting for a breakout for continuation to $3,500. pic.twitter.com/NCHXnu5fP3
NEWS CONTINUES BELOW— Michaël van de Poppe (@CryptoMichNL) February 12, 2024
The recent breakout in ETH price indicates that a bear market has ended and the price may reach higher levels in the near future. However, while the SEC’s decision not to approve an Ethereum ETF has caused some concern in the market, major financial institutions such as Franklin Templeton are showing their faith in the market by filing for a spot Ether ETF. Franklin Templeton’s application is considered as an alternative that offers direct investment in ETH. The proposed ETF will enable the fund to earn rewards by participating in the consensus mechanism of its main network, thanks to its staking feature.
The healthy increase in participation in staking in Ethereum, exceeding 25%, increases the security of the blockchain network. However, the fact that Ethereum staking rates are between 3.5-4% has caused some disappointments. These rates are lower than the yield offered by 1-year US Treasury bonds.
In light of these developments, the future of Ethereum looks bright. Price increases, initiatives by major financial institutions and increasing interest in staking further strengthen Ethereum’s position in the cryptocurrency market.
