During the Asian trading session on Monday morning, Ethereum soared to a peak not seen in 22 months, hitting $3,125. This marks the highest valuation the digital asset has attained since April 2022.
This surge has propelled Ethereum’s price up by an additional 2.5%, contributing to a 36% increase over the past month.
Ethereum currently stands out as the frontrunner in the cryptocurrency markets, which have experienced a modest 0.5% uptick, leading to a total market capitalization of $2.1 trillion – the highest it has been since April 2022.
Ethereum’s Momentum and Potential Trajectory
Market analyst Jacob Canfield noted on February 26th that Ethereum has repeatedly switched between support and resistance levels, setting its sights on the $3,350 mark.
With the impending deadline for the spot Ethereum ETF in May, Canfield remarked, “things are getting interesting.”
$ETH – Up only after the $2200 retest at the lows. Flipped multiple S/R’s now.
STill targeting $3333 / $3350 .618 move as per the playbook I posted in October.
Ethereum ETF deadline in May. Things are getting interesting. pic.twitter.com/BrtCl6HeUx
— Jacob Canfield (@JacobCanfield) February 25, 2024
Additionally, ‘Rekt Capital’ analysts pointed out that Ethereum is on the verge of achieving a historic monthly closure. This would only be the second time in history that Ethereum has closed above the $2,791 level on a monthly basis during a bullish market phase.
$ETH is on the cusp of a historic Monthly Close
It would be only the second time in history that #ETH has Monthly Closed above the $2791 (red) level in a bull market#Crypto #Ethereum pic.twitter.com/GS8WO2zjNS
— Rekt Capital (@rektcapital) February 25, 2024
Throughout February, Ethereum has been on an impressive upward trajectory, starting at $2,260 at the beginning of the month and closing at over $3,100 by month-end. Trader “Satoshi Flipper” also expressed bullish sentiment regarding Ethereum, stating, ” $10,000 for 1 token at the blow-off top this bull cycle is already programmed.”
To reach this anticipated peak, Ethereum would need to register a 220% gain, a target that appears plausible given the recent performance of certain altcoins.
Furthermore, Ethereum is breaking through a significant resistance level against Bitcoin, with the ETH/BTC ratio nearing 0.061, a point where it is set to surpass the weekly supertrend.
BTC, on the other hand, has maintained a steady value at $51,530 at the time of reporting.
Growing Ethereum FOMO
From a fundamental perspective, Ethereum remains in a robust position, with narratives surrounding staking and restaking taking centre stage. Presently, approximately 31 million ETH are staked, representing over a quarter of the circulating supply.
If a spot ETH ETF is approved, it is highly probable that the assets underpinning the fund will be staked to generate additional yields. This would result in a reduction in the available ETH on the markets, potentially triggering a supply shock.
Moreover, since the Merge, the Ethereum network has predominantly been deflationary, leading to a gradual reduction in the supply.