Ethereum, the world’s second-largest cryptocurrency by market capitalization, has shown impressive recent momentum, ratcheting up 5.78% in the past 24 hours alone, pushed mostly by some positive news and developments. Data shows that Ethereum (ETH), as of this past Wednesday, was trading much closer to its all-time high, at $3,398.43. That places it at a market cap of $410.13 billion and with a 24-hour trading volume of $37.36 billion. The surge clearly puts Ethereum back in the saddle in terms of cryptocurrency market rankings. Comparably, Ethereum’s price was somewhere around $2,845.04 one month prior to this past Wednesday, indicating that its price surged upward by 19.4% over that one-month stretch—something of a given with majority uptick pricing since the recent July 2022 low of around $1,000, post-Ethereum Merge and with Ethereum trading sideways. Ethereum’s price action has been affected by notable recent events and news developments. One of these was the disclosure that Donald Trump’s World Liberty Financial has invested in ETH, which hints at a broader change in political and even institutional sentiment towards Ethereum as a whole. Following that revelation, we saw a lot of chatter wondering whether Trump might be more on Ethereum’s side than Bitcoin’s. Not long after came the Epic moment when Vitalik Buterin unveiled Ethereum’s—no pun intended—scalable roadmap , which centers on Layer 2 (L2) growth and blob (that seriously is what it’s called) scaling. No laughter from the Solana fanboys this time: That is a genuinely impressive show of commitment to both a censorship-free and permissionless blockchain as well as a clear ecosystem that’s still truly gunning for the top. On the regulatory front, the U.S. District Court for the Northern District of California reversed the sanctions on Tornado Cash (TC). Whether you use TC or not (and I definitely don’t; I’m more of a Pirate Bay kind of gal), that’s a big win for Ethereum developers and users and an even bigger sign to the market that regulatory approaches can change. From a technical analysis perspective, Ethereum’s chart patterns and indicators suggest a bullish trend. The recent price action has formed a bullish pennant pattern, which is typically followed by a breakout. The relative strength index (RSI) is currently at 60, indicating that ETH is not yet overbought and has room for further upward movement. Volume analysis shows a steady increase in trading volume, supporting the bullish trend. Key price levels to watch include the support at $3,200 and resistance at $3,500. Recent trading activity has seen a surge in buy orders, particularly from institutional investors, which has helped drive the price upward. The moving averages, including the 50-day and 200-day MA, are both trending upward, further confirming the bullish sentiment. An analytical view, both social and on-chain, sheds light on Ethereum’s recent performance. When gauging how the ‘Ethereum community’ feels about the current state of the network, it’s safe to say that things look very bright indeed. Part and parcel of this community are the ‘whales’—those with large holdings of ETH—whose activities are worth observing. More than a few have been ‘accumulating’ over the last several weeks. The community is also transacting more and faster than ever. Almost 200 million more transactions have happened over the last three months compared to the previous quarter. An uptick of this sort obviously has to mean something, and to many, it means Ethereum is well on its way to extensive future adoption. To sum up, Ethereum’s recent price activity and market dynamics point strongly in the direction of a bullish outlook. Broader market correlation, especially with Bitcoin, is certainly positive. But Ethereum’s distinct scaling solutions, and the institutional interest it is getting, set it apart even more. Catalyst events, like the Pectra mainnet upgrade scheduled for March 11, 2023, are seen as potential price movers, too. Risk factors are mostly of the regulatory kind and revolve around how new laws might affect blockchain-based businesses. Increasing competition from other platforms is also a potential problem. But price targets for Ethereum are optimistic, to say the least. Many analysts are calling for new all-time highs in the near future. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
