In a week of rapid gains, Ethereum (ETH) has surpassed the $2,000 mark for the first time since April 2023, marking a significant milestone and hinting at a potential trend reversal for the world’s second-largest cryptocurrency. The price surge comes amid growing institutional interest, spearheaded by BlackRock’s recent registration of an Ethereum Trust in Delaware. At the time of writing, ETH is trading at 2,038.33USD, up 8.24% in the last 24 hours.
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BlackRock Registers iShares Ethereum Trust in Delaware
The asset management behemoth, BlackRock, with over $9 trillion in assets under its control, has shown increasing interest in digital assets, previously setting up a Bitcoin Trust and now advancing its commitment to the sector with Ethereum. Blackrock has already filed for Bitcoin spot ETF and since then we have seen bullish sentiments in the overall market. This move is not only seen as an explicit endorsement of Ethereum but also as a precursor to a broader wave of institutional investment into the crypto space.
Ethereum’s rally has been technical as well as fundamental. After a decisive break out from a falling wedge pattern, ETH powered through major resistance levels, including the $1,800 mark and the 200-day moving average, signaling that bulls have taken the reins after a prolonged period of bearish sentiment.
Though short-term and medium-term trends for ETH have turned bullish, the long-term outlook is cautious as the Relative Strength Index (RSI) suggests that the asset may be overbought. With the RSI reaching heights not seen since 2021, a cooldown period could be imminent, though the uptrend is likely to persist as long as the $1,800 support level remains defended.
Ethereum to undergo Cancun upgrade in Q1 2024
The Ethereum market’s excitement is further fueled by anticipations of the upcoming Cancun upgrade, scheduled for Q1 of 2024. The upgrade promises to enhance scalability, security, and efficiency of the Ethereum network. Dubbed “Cancun-Deneb,” it is poised to implement significant improvements through multiple Ethereum Improvement Proposals (EIPs), addressing long-standing issues such as high gas fees and network throughput.
As ETH trades around $2,040, nearing its yearly highs, and Bitcoin reaches new yearly peaks, Ethereum could experience a “catch-up” rally. Analysts are watching the $2,400 resistance closely, as a break above this level could herald the return of a full-fledged crypto bull market.
Also read: Ethereum Price Prediction 2024 to 2030
Is ETH Spot ETF coming in 2024?
Ethereum’s strides forward are not going unnoticed. As BlackRock lays the groundwork for a possible spot Ether ETF application — mirroring its approach with Bitcoin — the entire sector could see a wave of similar actions from other major financial institutions, bringing a fresh wave of legitimacy and capital to the cryptocurrency markets.
Investors and enthusiasts are closely watching the market dynamics, as Ethereum’s latest movements and upcoming technological advancements suggest a robust roadmap ahead for the decentralized platform.