According to Cointelegraph: Ether (ETH) saw a significant uptick this week, rising roughly 12% including a 1.5% increase today, reaching a value of $2,540 – the highest since January 19th. This surge is due to several influencing factors, including technological developments, bullish market sentiment, and logistical advancements within the crypto market.
The overarching bullish sentiment in the crypto market is beneficial for Ether. Notably, Bitcoin, which forms over 50% of the total crypto market, had a week-to-date gain of over 15%, signaling overall market optimism. Increased institutional interest in crypto investment vehicles, like the newly approved Bitcoin ETFs, and suggestions of a potential reduction in interest rates from Federal Reserve Chairman Jerome Powell, contribute to this optimism. The strong correlation between Bitcoin and Ether also propels Ether's price upward.
As for Ethereum's specific catalysts, the upcoming Dencun upgrade scheduled for March 13th, aimed at improving network efficiency and Layer-2 support, has historically had a positive impact on Ether's price. Similarly, Ethereum recently reached a milestone with 25% of its circulating supply now staked, suggesting faith in the blockchain's long-term potential, simultaneously impacting Ether's price due to a reduced circulating supply.
Additionally, there's growing expectation regarding the approval of Ethereum's spot ETF applications, especially after Standard Chartered predicted the approval of all pending applications by May 2024.
Finally, Ether's own price recovery and technical bounce following its touch on support confluence have contributed to the price increase. However, the bearish case anticipates a pullback from its current descending trendline resistance, potentially leading to a dip aiming for the 50-day exponential moving average (50-day EMA). The possible decline toward the horizontal resistance level at approximately $2,620 also suggests a potential for a bearish reversal.
