Ethereum (ETH) has been holding its ground in the volatile cryptocurrency market, maintaining a steady uptrend above $2,700 despite significant resistance at $2,800. This movement mirrors Bitcoin’s (BTC) own struggles to reclaim the critical $64,000 support level, leaving traders on edge. Despite these challenges, the long-term outlook for Ethereum remains bullish, largely fueled by an increase in network staking activity.
Ethereum Staking Hits New Milestone
As of Monday, August 26, the total amount of Ethereum staked reached an impressive $34 million, according to data from CryptoQuant. This surge in staking demonstrates that investors are willing to hold onto their ETH for the long haul, locking up their assets in the network’s proof-of-stake mechanism. This level of commitment from investors highlights the strong fundamental growth of the Ethereum network, even though the market price has yet to fully reflect these bullish developments.
Ethereum is currently trading at $2,726, having bounced off the crucial $2,618 support level. This uptick can be attributed to Bitcoin’s recent surge above the $60,000 mark, which gave the entire crypto market a much-needed boost. However, Ethereum now faces a significant hurdle as Bitcoin’s momentum slows. The $3,000 psychological level looms large, and flipping this barrier is crucial for ETH to continue its upward trajectory.
Should Ethereum manage to surpass the $3,000 mark, it could trigger a wave of panic buying, propelling the price even higher. This scenario could see ETH rally toward the $3,352 to $3,497 resistance zone, with some analysts predicting a potential retest of the $3,500 level. If achieved, this would represent a nearly 30% gain from current levels.
Santiment’s Whale Transaction Count metric shows that there have been no significant upticks in transactions worth $100,000 or more. This indicates that large investors, often referred to as “whales,” are not looking to book profits just yet, which could bode well for Ethereum’s price stability in the short term.
Additionally, the Network Realized Profit/Loss (NPL) indicator noted a sharp increase last Friday, suggesting that some investors took profits during the recent rally. While this could signal caution, it also implies that short-term profit-taking may be behind us, reducing potential selling pressure as Ethereum continues its climb.
Will Ethereum Reach a New All-Time High in 2024?
The question on every investor’s mind is whether Ethereum will hit a new all-time high (ATH) in 2024. According to data from Polymarket, 77% of bettors are skeptical, believing that Ethereum will not surpass its previous ATH of $4,868 next year. However, a smaller but optimistic 21% expect ETH to cross this threshold in the fourth quarter of 2024.
Also Read: Ethereum Staking Surges – 34M ETH Locked Up, 9.84% Growth In 90 Days
While the technical and on-chain data point to a bullish outlook for Ethereum, the broader market, particularly Bitcoin, will play a pivotal role in determining its direction. Should ETH slip below the $2,618 support level and turn it into resistance, the bullish thesis would be invalidated, potentially leading to a 4% decline before sidelined buyers step in.
For now, all eyes are on the $3,000 mark. If Ethereum can break through this critical level, the stage could be set for a significant rally, reinforcing its position as a leading cryptocurrency in the market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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