Ether (ETH) rallied past the key $2,400 level this week as traders speculated on the approval of a potential Ethereum exchange-traded fund (ETF). The second-largest cryptocurrency by market capitalization gained over 5% in 24 hours to hit its highest level since last September.
Keypoints
Ether price surged past $2,400 as traders bet on a potential Ether ETF following Bitcoin ETF approvals.
BlackRock previously filed for an Ethereum Trust ETF which added to speculation of an Ether product.
Tokens like LDO, RPL, MNT, and OP also rallied as they are connected to Ethereum and could benefit from an ETF.
Analysts say Ether looks positioned for a breakout with a bullish chart pattern targeting $3,500 if resistance around $2,320-$2,382 is broken.
Despite market chaos from fake Bitcoin ETF tweets, Ether price still managed to surge due to strong fundamentals and on-chain data.
Driving the bullish sentiment was previous news that BlackRock, the world’s largest asset manager, had filed paperwork with the U.S. Securities and Exchange Commission (SEC) for an Ethereum Trust ETF. The proposed “iShares Ethereum Trust” would allow mainstream investors easy exposure to spot Ether prices.
While Bitcoin ETF approvals are widely expected this year, the BlackRock filing added credibility to hopes for an Ether product as well. This is significant because an SEC-approved crypto ETF would bring in fresh institutional capital from pension funds, endowments, and traditional finance players.
Along with Ether, native tokens of Ethereum-based protocols also benefited from the ETF speculation. For example, staking tokens Rocket Pool (RPL) and Lido DAO (LDO) notched double-digit percentage gains. As staking rewards are a prime feature of Ethereum’s shift to proof-of-stake consensus, an influx of new demand from an ETF could be a boon for staking platforms.
On the technical analysis front, Ether’s bullish chart signals also reinforced the positive fundamentals. According to analyst World of Charts, ETH appears to be consolidating in a “bullish pennant” pattern that has an ultimate target of around $3,500. To confirm this breakout, traders first want to see resistance levels at $2,320–$2,382 convincingly taken out.
The promising on-chain data also buoyed market confidence in Ether’s uptrend. Blockchain intelligence firm Santiment reported that the number of large “whale” transactions on Ethereum rocketed higher in the past day. This suggests that deep-pocketed investors still have an appetite to accumulate more ETH at these levels.
Remarkably, Ether managed to post gains despite the wider crypto market reeling from fake news of a Bitcoin ETF approval. A series of forged tweets from a hacked SEC account initially sent Bitcoin spiking before a swift plunge once the ruse was uncovered. Still, Ethereum proved resilient with its strong fundamentals and held onto daily gains of nearly 4%.
With ETF excitement building, technicals flashing bullish signals, and whales continuing to stockpile, analysts broadly agree further upside appears in store for Ether. The next key resistance level to watch is the psychological $2,500 mark, which opens the door to test $3,000 and beyond. As long as crypto adoption trends remain intact, Ethereum looks poised to continue outpacing the broader digital asset market.
