Ethereum, the leading alternative cryptocurrency, has recently experienced a significant surge, crossing the $2,600 threshold and witnessing weekly gains that exceed 15%. This bullish trend has heightened expectations for a continued rally for the digital currency.
Ethereum’s Rally Towards Higher Targets
Experts in the cryptocurrency sphere are forecasting a robust rally that could propel Ethereum to the $3,500 mark by 2024. Renowned analyst Michael van de Poppe has indicated that Ethereum’s recent support level at $2,150 is a precursor to an upward thrust towards this higher price goal.
The digital asset has been on an upward trajectory since June 2022, with rising trough levels signaling further potential for acceleration in growth. A breakthrough in November 2023 pushing past long-standing horizontal resistance has set the stage for new highs, including a peak of $2,717 reached in January 2024, moving beyond a critical Fibonacci retracement level.
The Relative Strength Index (RSI) for Ethereum currently offers a complex picture, but the recent breakout suggests an end to bear market conditions and hints at an impending progression to substantially higher valuations.
Competition Heats Up for Ethereum ETF Approval
Despite the U.S. Securities and Exchange Commission’s hesitation to approve a spot Ethereum ETF, investment giants like Franklin Templeton are joining the fray, following the steps of BlackRock and Ark Invest. Their recent application to the SEC signifies their aim to provide an investment vehicle akin to direct Ethereum exposure, incorporating ease of trade and a staking feature for network rewards.
Staking in Ethereum shows a promising uptick with active participation surpassing 25%, enhancing the blockchain’s security. Nonetheless, the yield from Ethereum staking, currently at 3.5-4%, falls short of returns from traditional safe investments like U.S. Treasury bills.