Why is the Ethereum Price Up Today?
Due to economic uncertainty, its price surged sharply after ETH, the second largest cryptocurrency in market capitalization, fell to $2,132. As of now, ETH Price has earned 5.5% and traded nearby $2728. The crypto users question the reasons behind the surge sparked this exciting excitement.
21shares Ethereum ETF CBOE file
One important reason for the rise in Ethereum prices is a new ETF proposal. Recently, CBOE BZX Exchange has A request was made Together with the Securities and Exchange Commission (SEC), the 21shares core Ethereum ETF is allowed to bets. If approved, this will allow Ethereum holders to receive rewards while staying secure with the custodian.
This put-in method can reduce security risks and may attract more institutional investors. Since the SEC has a maximum decision of 240 days.
Whales accumulate large amounts of ETH
Ethereum has also been promoted from the Big Whale. Recent on-chain data suggests that whales purchased more than 600,000 ETH last week alone. This suggests that the main whales position themselves before potential price breakouts.
When the whale buys in large quantities and moves its shares out of exchange, it reduces the available supply. This can create buying pressure, thereby increasing the price.
Growing adoption of Ethereum L2
Another key factor supporting the rise of Ethereum is the increasing adoption of Tier 2 solutions. Recently, Tether announced that it will use Ethereum’s arbitration network to support new cross-chain systems.
This move strengthens Ethereum’s position as a leading blockchain for financial applications. As transaction costs decrease and processing speeds, more and more companies may start using Ethereum’s layer 2 solutions, thereby increasing its value.
Ethereum’s Eyes $3,000
Judging from the Ethereum price list, analysts see strong potential for further gains. ETH has been trading within a key range since the beginning of 2024, with holding support close to $2,200 while facing resistance of about $4,100.
Ethereum continues its upward trend, it needs to surpass $2,817 to $3,000. If ETH gets support at this level, it could set the stage for a $4,000 rally.
However, technical indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator show that bearish momentum remains, meaning traders should be cautious.
