Ethereum was one of the biggest movers in the past day, up an astonishing 8% to over $2,800. It headed as high as $2,700, its loftiest level in almost two weeks. There are five important reasons that underpin this price surge. These are bolstered by sizable inflows into Ethereum-based ETFs, an increase in staking activity, and bullish technical indicators. The cryptocurrency is now approaching a crucial test, as it tries to break through what would be considered the $2,700–$2,800 resistance area.
Ethereum-based ETFs took in $296 million of new investment last week, a clear sign of the surging institutional interest. BlackRock, the largest investment management company in the world, just tripled its Ethereum holdings.
BlackRock added $500 million in ETH. The firm’s total holdings are currently at 1.5m ETH, worth $2.71b.
Ethereum’s rising price is connected to the record number of users staking their coins. As of right now, more than 34.65 million ETH, or about 30% of the total supply, is staked on the Beacon Chain.
As a result, this more than doubles the amount of ETH that is being staked which reduces the circulating supply, creating upward price pressure from this scarcity. Technical indicators are adding to the bullish sentiment for Ethereum.
Analysts suggest that these technical indicators could propel Ethereum towards the $3,000 mark if it successfully overcomes the $2,700–$2,800 resistance level. This mark is considered an important hurdle for Ethereum to overcome to help maintain its positive strength.
