Ethereum

Ethereum 2.0

DeFi

Momentum

Ethereum (ETH), the global runner-up in the cryptocurrency ring, is making serious moves this week, <a href="https://www.coingecko.com/en/coins/ethereum" target="_blank" rel="noopener nofollow">stepping closer to the coveted $3,000 mark</a>. Could this be the opening bell for a February knockout, sending it soaring towards a staggering $4,000 finish by month’s end? 
<h2 data-sourcepos="7:1-7:375" id="strong-ethereum-staking-and-etf-surge-bullish-momentum-strong">Ethereum Staking And ETF Surge: Bullish Momentum</h2> 
Several factors are fueling this bullish sentiment, starting with the surging popularity of <a href="https://beaconcha.in/" target="_blank" rel="noopener nofollow">ETH staking</a>. As Ethereum 2.0 gathers momentum, more investors are locking their ETH into staking contracts, earning passive income while reducing the readily available supply in the market. This “induced market scarcity,” as experts call it, creates upward pressure on the price. 
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-575406" src="https://www.newsbtc.com/wp-content/uploads/2024/02/a_c50cc2.png?resize=361%2C235" alt="" width="361" height="235" data-recalc-dims="1"> 
The numbers are impressive: a whopping 25% of all circulating ETH, or 30.2 million coins, are now locked in staking contracts. This represents a significant surge of 600,000 ETH deposited between February 1st and 15th. And with an annualized reward rate of 4%, the incentive to join the staking party is only growing stronger. 
<img loading="lazy" decoding="async" class="aligncenter wp-image-575410 size-large" src="https://www.newsbtc.com/wp-content/uploads/2024/02/a_470d92.png?w=860&amp;resize=860%2C338" alt="" width="860" height="338" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/a_470d92.png?w=1388 1388w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_470d92.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_470d92.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_470d92.png?w=860&amp;resize=860%2C338 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_470d92.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_470d92.png?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
But staking isn’t the only force propelling ETH forward. The potential approval of an Ethereum Exchange-Traded Fund (ETF) has also injected optimism into the market. Such a product would make it easier for institutional investors to enter the crypto space, potentially leading to significant inflows and price appreciation. 
Furthermore, the recent <a href="https://www.axios.com/2024/02/14/ethereum-dencun-upgrade" target="_blank" rel="noopener nofollow">Dencun upgrade</a> on the Sepolia testnet, promising improved network performance and lower transaction costs, has been met with positive reactions from stakeholders. This could attract more developers and users to the Ethereum DeFi ecosystem, boosting its utility and ultimately driving demand for ETH. 
<h2 data-sourcepos="15:1-15:228" id="strong-obstacles-ahead-eth-s-journey-towards-4-000-strong">Obstacles Ahead: ETH’s Journey Towards $4,000</h2> 
However, the path to $4,000 isn’t without its obstacles. A major resistance level looms at $2,850, where approximately 1.23 million addresses, holding a combined 578,000 ETH, bought in. These holders might be tempted to take profits as the price approaches their break-even point, creating a temporary hurdle. 
Additionally, a price dip below $2,500 could trigger panic selling among investors who bought at higher prices. While some experts suggest that such a scenario might be mitigated by “frantic last-minute purchases” to avoid losses, it underscores the inherent volatility of the cryptocurrency market. 
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-575403" src="https://www.newsbtc.com/wp-content/uploads/2024/02/a_6a13cd.png?resize=934%2C304" alt="" width="934" height="304" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/a_6a13cd.png?resize=934%2C304?w=934 934w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_6a13cd.png?resize=934%2C304?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_6a13cd.png?resize=934%2C304?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_6a13cd.png?resize=934%2C304?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/a_6a13cd.png?resize=934%2C304?w=750 750w" sizes="(max-width: 934px) 100vw, 934px" data-recalc-dims="1"> 
IntoTheBlock’s global in/out of the money (GIOM) data further emphasizes this point. This data groups all existing ETH holders based on their historical buy-in prices. According to GIOM, the cluster of holders at the $2,850 resistance level represents a potential selling pressure. However, if the bulls can overcome this hurdle, another leg-up towards $3,000 and beyond becomes more likely. 
Ultimately, while the short-term outlook for ETH seems promising, caution remains key. Investors should carefully consider their own risk tolerance and conduct thorough research before making any investment decisions. As with any market, past performance is not necessarily indicative of future results. 
The next few days or weeks will be crucial in determining whether ETH can break through the $2,850 resistance and continue its ascent towards $3,000 and beyond. 
Featured image from Adobe Stock, chart from TradingView

Ethereum Inches Closer To $3,000 – Will February Deliver A $4,000 Knockout?

Table of Contents

NewsBTC

Other articles published on Feb 16, 2024

Memecoins Fail to Mirror Other Altcoins Bullish Movement: Investors Shift Focus From Dogecoin (DO...

Ethereum Price Analysis As ETH Tops $2,800, Is $3,000 The Immediate Next Stop?

Terra Luna Classic (LUNC) Price Prediction Begins Bullish Pressure, Alley To $0.001 Clear?

XRP Price Breaks Key Resistance, Eyes Epic 20% Upswing

AI blockchain sector nears $14 billion cap with Bittensor’s surge

Expensive Defensive Measures Deter Major Blockchain Attacks

Join our free newsletter for daily crypto updates!