Two significant occurrences on Thursday spurred advances in Ethereum, which led to a price rally. With the amendment of their Spot ETH applications, Ark and 21Shares, Ethereum’s Exchange Traded Fund (ETF) applicants, raised hopes for acceptance.
On Thursday, the price of ETH increased to $2,444, continuing its upward trend of highs and lows.
Two factors are driving the price of Ethereum higher.
A recent tweet from Lido Finance states that the supply of staked Ethereum tokens reached 25% on Thursday. Since the staked supply reflects Ether that has been taken out of circulation, this is a significant milestone for Ethereum. This usually lessens the pressure on Ethereum sellers.
The revisions that applicants Ark Invest and 21Shares made to their Ethereum ETF filings serve as the second impetus. This has raised expectations for the approval of the Ethereum ETF. As the SEC’s approval of the Spot Bitcoin ETF resulted in a significant influx of cash from traders, Ethereum investors anticipate a comparable event following the approval of the ETH ETF.
The Ethereum price may rise to a peak in 2024.
The price of Ethereum has been rising since January 23. The pricing chart below shows that the altcoin formed higher highs and higher lows. The nearest resistance is $2,440.09, which represents the 50% Fibonacci Retracement level of the January 12–23 fall.
The next goal for the Ethereum price, if it breaks through resistance at $2,440.09, is $2,500. The peak of $2,715.29 in 2024 is almost a 9% increase from $2,500.
The relative strength index (RSI) for Ethereum is 58.07, staying above the neutral zone. Green bars on the Moving Average Convergence/Divergence (MACD) indicator indicate that there may be momentum supporting ETH price increases.
Invalidating the bullish argument for Ethereum may be a daily candlestick close below the $2,267 support level. The price of ETH can possibly find support at the low of $2,164.89 on January 23.