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Thursday, December 12, 2024

Ethereum Breaches $2,200, Investors Expect $3,000 This Week

The price of Ethereum (ETH) has risen sharply today, hitting a new 2023 high of $2,250 as the cryptocurrency market continued to trend higher toward a successful year-end.

The recent strong upward trend in Ethereum aligns with Bitcoinโ€™s continuous attempt to break above $41,000, which it did today. As of the time of writing, the price of bitcoin was $41.437.

Analysts say the approval of a BlackRock spot ether instrument would result in an influx of institutional capital into Ethereum, the second-largest cryptocurrency network globally.

Ethereumโ€™s Price Surge

The most recent charts show an upward trajectory that has many analysts and investors upbeat about the cryptocurrency hitting the coveted $3,000 barrier in the upcoming weeks or months.

As this transpired, a crucial on-chain trade statistic reveals that, just 24 hours prior to the most recent price breakout, Ethereum 2.0 stakers made an unexpected $330 million move.

ETH Staking Flows. Source: IntoTheBlock

On December 2, investors pulled out a massive 169,220 ETH (about $337 million) from ETH 2.0 beacon chain Proof of Stake contracts, according to IntoTheBlock.

Interestingly, since the Ethereum Shapella Upgrade enabled withdrawals in April 2023, this is the second-highest staking withdrawal amount.

Resilient Rebound And Bullish Market Signals

Today, when the price of Bitcoin broke beyond the coveted $41,000 barrier, the cryptocurrency market is starting to feel more optimistic again.

The price of ETH recovered from the psychologically critical $2,000 threshold in response to this positive change, showing an 8% weekly increase to its current trading price of $2,250.

Ethereum currently trading at $2,244.7 territory on the daily chart: TradingView.com

The classic sign of a bull market is a sequence of higher lows and higher highs, which is what we observe when we look at Ethereumโ€™s daily chart. The 50-day and 100-day moving averages served as dynamic resistance, but the price has now overcome both.

โ€œOn the basis of lower yields, cryptocurrency has been going pleasantly higher, along with Gold,โ€ crypto data firm Amberdata stated in a newsletter on Sunday.

In a note, Lucy Hu, Senior Analyst at Metalpha, stated that there is increasing market expectation for a rate reduction in the coming year.

Investor optimism on the potential for Bitcoin ETF applications from significant asset management firms is also growing.

She states:

โ€œThis is an official declaration of a bull run, and there may be additional price increases in the upcoming weeks.โ€

Meanwhile, laws may also have an impact on Ethereumโ€™s price in the future; although favorable developments may encourage investment, harsher laws may provide risks. Important factors also include investor sentiment and the state of the economy.

Itโ€™s unclear if ETH will overtake Bitcoin in market valuation; this will depend on things like adoption rates and network improvements. Right now, Bitcoin is in the lead with a far larger market capitalization.

(This siteโ€™s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

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