Ethereum Price Continues to Strengthen, Outperforming Bitcoin
The price of Ethereum, the second-largest cryptocurrency, has been showing strength and outperforming Bitcoin. In the last seven days, Ethereum’s value has increased by 16% to $2,909, while Bitcoin’s value has only grown by 7% to $52,009 during the same period.
What’s Driving Ethereum Price Higher?
There are several factors contributing to the rise in Ethereum price:
- Ethereum faces volatility alongside Bitcoin as traders focus on BTC due to recent events like the approval of Bitcoin ETFs and the upcoming halving event.
- Ethereum’s supply continues to shrink with the transition to the proof of stake (PoS) consensus mechanism.
- Over 25% of Ethereum’s supply is locked in staking contracts.
- The upcoming Dencun upgrade in March will help decongest the Ethereum network and make transactions cheaper.
- The approval of spot Bitcoin ETFs has increased speculation on Ethereum.
Ethereum Price Prediction: Will ETH Hit $3,600 This Week?
With a weekly close above the range high at $2,800, Ethereum price is expected to continue its upward momentum. Previous weekly closes above this range high have led to further price increases. The Moving Average Convergence Divergence (MACD) indicator also supports a bullish narrative for Ethereum price.
Hot Take: Ethereum Gaining Momentum for a Potential Breakout
Based on its strong fundamentals and technical indicators, Ethereum is gaining momentum and could potentially break out in the coming weeks. Factors such as the shrinking supply, increase in staked ETH, and anticipation for the Dencun upgrade contribute to a bullish thesis for Ethereum. With a debut above $3,000 and the upcoming Bitcoin halving in April, Ethereum price may reach $3,600.
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