Ethereum Price Forecast: ETH Surges by Almost 40%
Ethereum has experienced a significant surge in price over the past 20 days, outperforming Bitcoin. The price of Ether has increased by almost 40%, from $2,416 to $3,344, while Bitcoin has seen a 35% increase to $59,354. This rally was anticipated due to the upcoming Bitcoin halving in April.
Unlike previous bull markets, the current crypto market is trading in the era of ETFs. The approval of Bitcoin ETFs has generated optimism for ETH ETFs as well.
Why Is ETH Rally Unstoppable?
The recent surge in Ethereum’s price can be attributed to several factors:
- The Dencun upgrade, set to launch on March 13, is expected to be a game changer for the Ethereum ecosystem. It will bring a larger block size, cheaper transactions for layer protocols, and an improved developer experience.
- The spot ETF has also contributed to the bullish case for Ethereum.
- Bitcoin’s strong bullish case has had a positive impact on Ethereum as well.
These factors have increased risk appetite among investors and boosted confidence in Ethereum.
Ethereum Price Forecast: What to Expect
Based on technical analysis and market indicators, Ethereum’s price is expected to continue its upward trend:
- The Relative Strength Index (RSI) is at 78, indicating that buyers are in control and the uptrend is far from over.
- The Money Flow Index (MFI), which tracks the volume of money flowing in and out of Ethereum, aligns with the rising price.
These indicators suggest that Ethereum’s price will continue to rise ahead of the Dencun upgrade.
Ethereum’s Strong Support and Accumulation
According to blockchain analytics by IntoThe Block, Ethereum faces little resistance up to $3,800 from its current level. The largest accumulation zone for ETH is between $2,803 and $2,903, where around 1.6 million holders bought about 4 million ETH at an average cost of $2,860.
Furthermore, over 85% of the total Ethereum supply, approximately $27 billion, is currently in profit. Only 14.4% of the supply is in loss, worth around $4.8 billion. Additionally, a small percentage of the supply (0.03%) is locked in staking contracts.
This data indicates that the majority of ETH holders are in profit and have a long-term bullish outlook. Their reluctance to sell contributes to the positive market sentiment surrounding Ethereum.
Growth in DeFi Sector
The decentralized finance (DeFi) sector of Ethereum has also experienced significant growth alongside the price surge. Defi Llama reports a total value locked of $52.4 billion in DeFi protocols on Ethereum.
As the value locked in DeFi increases, selling pressure on Ethereum will decrease, allowing its price to continue rallying.
Hot Take: Ethereum Price Continues to Soar 🚀
Ethereum’s recent surge in price has been driven by various factors such as the upcoming Dencun upgrade and increased optimism for ETH ETFs. Technical analysis suggests that Ethereum’s price will continue to rise, with strong support and accumulation zones providing further confidence in its long-term bullish outlook.
The growth of the DeFi sector on Ethereum has also contributed to the positive market sentiment surrounding the cryptocurrency. As the value locked in DeFi protocols increases, selling pressure on Ethereum will decrease, allowing its price to continue its upward trajectory.
Overall, Ethereum’s unstoppable rally demonstrates its resilience and potential for further growth in the crypto market.
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