The world’s second-largest cryptocurrency Ethereum (ETH) has given a strong breakout recently with the ETH price shooting 6% moving past $2,600 levels. With this, ETH has extended its weekly gains to more than 15%.
ETH Price Rally to $3,500
Analysts are already bullish about the Ethereum price rally for 2024, and the recent breakout opens the gates for $3,500.
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
— Michaël van de Poppe (@CryptoMichNL) February 12, 2024
Since June 2022, Ethereum’s price has been on the rise, marked by the creation of two higher lows indicated by green icons. The pace of increase accelerated after each of these lows.
In November 2023, Ethereum’s price broke out from a long-standing horizontal resistance level. This breakthrough led to a peak of $2,717 in January 2024, surpassing the 0.382 Fibonacci retracement resistance level.
Although there was a brief decline afterward, ETH managed to rise above the Fibonacci resistance last week, although it has not yet reached a new yearly high. The weekly Relative Strength Index (RSI) presents a mixed picture. An RSI reading above 50 with an upward trend signals an advantage for bulls, whereas a reading below 50 indicates the opposite.
The recent breakout in the ETH price suggests that the bear market accumulation is over and we could be heading for higher levels very soon.
Race for Spot Ethereum ETF Grows
While the SEC has conveyed no intention of approving a spot Ethereum ETF, big financial players continue to make a push. On Monday, February 12, Franklin Templeton filed for a spot Ether ETF joining top players such as BlackRock and Ark Invest.
Franklin Templeton’s filing reveals the firm’s intention to offer an investment alternative akin to direct Ethereum investments. Its ETF will further simplify the process of purchasing, holding, and trading digital assets across multiple platforms. Notably, their proposed ETF incorporates staking, enabling the fund to earn rewards through participation in the network’s consensus mechanism.
In a recent development, the Ethereum staking has also witnessed a healthy uptick surpassing 25% participation. The growing participation in ETH staking would provide additional security to the Ethereum blockchain network.
However, the Ethereum staking rates have been a bit disappointing standing around 3.5-4%. On the other hand, the safest instrument i.e. the 1-year U.S. Treasury note offers higher than this.
