Despite recent fluctuations, Bitcoin‘s price movements suggest a long-term demand phase has begun, with growth expected to continue as Exchange-Traded Funds (ETFs) trade. This trend extends beyond short-term volatility, indicating a focus on developments and ETF-driven growth throughout the year. Similarly, mid-year introductions of spot Ethereum (ETH) ETFs could replicate this growth for Ether.
At the time of writing, ETH is priced at $2,670, with predictions of a significant rise in BTC parity to $3,200 in the coming months, especially after the approval of spot BTC ETFs. Despite setbacks, the spot BTC ETF approval has boosted ETH prices for two main reasons: anticipated Ethereum updates leading to reduced fees and improved performance, and optimism from major players like BlackRock regarding spot ETH ETF decisions expected mid-year.
The launch of ETFs is likely to amplify the appetite for ETH staking returns, with stake protocols benefiting as well. Long-term investors are particularly interested in ETFs that offer significant portions of staking income.
Weekly chart readings show ETH has been on a weak but steady rise since May 2022. This week, ETH broke through the $2,410 resistance area and a rising resistance trend line, reaching a peak of $2,689, indicating a significant break from a 600-day trend line. The weekly RSI and fundamental analysis support the uptrend, with the next resistance area potentially 35% above the current price, between $3,340 and $3,500.
Should ETH close below the trend line, prices could fall to $2,000, contingent on the SEC making clearer statements about ETH being a security.