Ether Climbs 5.5% Surpassing $2,400; Ethereum Readies for Major Upgrade, and Eager Anticipation for Spot ETH ETF Decision
Summary:
Ether's price has risen 5.5% in the last three days, with a 2.5% increase in the last 24 hours, surpassing $2,400. Key levels have transitioned from resistance to support, including the 50-day EMA and the $2,400 mark. Ethereum is closer to its ETH 2.0 vision with the anticipated Dencun upgrade including the "proto-danksharding" feature, reducing transaction costs and increasing data availability. Meanwhile, restaking platforms such as Swell are launching liquid staking tokens. Lastly, the SEC's delayed verdict on proposed spot Ethereum ETF applications may inject bullish momentum, with the Grayscale Ethereum Trust rising 84% over the last six months.
In the last three days, the price of Ether (ETH) has climbed 5.5%. Over the past 24 hours alone, it has seen a 2.5% increase, pushing its value beyond $2,400. Various technical and ecosystem considerations seem to be driving this uptrend, though it remains to be seen if they can push ETH beyond its 20-month peak of $2,717.
Over time, Ether's price movement starting from Feb. 5 has been characterized by a shift of key benchmark levels from resistance areas to supportive ones, including the 50-day exponential moving average (EMA) and the $2,400 level. At present, ETH's most robust support level is the 50-day EMA, which currently sits at $2,312.
According to IntoTheBlock's on-chain data, the 50-day EMA is nestled within the price bracket of $2,348 to $2,378, a range where roughly 2.68 million addresses had previously acquired about 6.76 million ETH. If ETH can sustain levels above this range, minimal resistance could pave the way for higher climbs.
Historical data backs this prediction - in October 2023, once ETH ascended above the 50-day EMA, it experienced a 65% surge to $2,700. Further analyses show that the moving average convergence divergence (MACD) indicator issued a crossover signal on Feb. 5. Importantly, ETH soared beyond the supply zone at $2,400 on Wednesday, Feb. 7, hinting at a potential trend reversal that could steer price levels toward the $2,500 to $2,700 range.
In terms of technical developments, Ethereum is progressing towards achieving its ETH 2.0 vision with the "proto-danksharding" feature expected in the upcoming Dencun upgrade. Aimed at facilitating cheaper transactions for roll-ups and increased data availability, this feature was last tested on Feb. 7, marking one of the most significant advances in the Ethereum network since the Shapella upgrade nearly a year ago.
The successful trial of "proto-danksharding" on the Holesky testnet lays the groundwork for the eagerly anticipated Dencun upgrade, poised to go live in the coming weeks. The upgrade introduces Ethereum restaking, where existing Ether stakes are re-staked to enhance mainnet security and energy efficiency.
Platforms like Swell, a liquid staking protocol for DeFi, have recently launched liquid staking tokens (LRT), providing access to its restaking points on Eigenlayer. Dune Analytics data reveals that EigenLayer accounts for a staggering 46% of the total value locked in liquid staking derivatives (LSD). Swell aims to capitalize on this market share by allowing investors to stake their ETH and its rswETH token on EigenLayer.
The pending approval of a potential spot Ethereum ETF could also inject bullish momentum into the market. Following the U.S. Securities and Exchange Commission's approval of spot Bitcoin ETFs on Jan. 10, investors eagerly anticipate a similar decision for Ethereum.
However, the SEC recently postponed decisions on proposed spot Ethereum ETF applications from Grayscale and BlackRock and again for Invesco and Galaxy's spot Ethereum ETF on Feb. 6. Despite this, the Grayscale Ethereum Trust (ETHE) has enjoyed an 84% rise over the last six months, outperforming Ether's 21% gain during the same period.
Investors predict that if a spot ETH ETF were approved, ETHE could be converted to a full-fledged spot ETH ETF, much like the Grayscale Bitcoin Trust (GBTC) product.
Published At
2/8/2024 2:05:00 AM
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