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Ethereum Surges Past $2,900: ETF Hopes, Dencun Upgrade, and Whale Action Fuel Rally

Arslan Butt•Tuesday, February 20, 2024•1 min read

Ethereum (ETH), the world’s second-largest cryptocurrency, has broken through the $2,900 barrier, marking a near 10% surge in the past week. This bullish climb can be attributed to several key factors, fueling optimism and driving investor interest.

Spot Ethereum ETF Dreams Powering the Engine

The most anticipated reason behind the rally is the growing optimism surrounding potential approvals of spot Ethereum Exchange-Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC). Several applications from major investment firms like Grayscale and VanEck are pending, and their potential approval could unlock significant mainstream investment into ETH.

Dencun Upgrade Lights the Path

Scheduled for mainnet launch on March 13th, the upcoming Ethereum Dencun upgrade promises significant improvements to the network’s scalability and efficiency. This update could attract more developers and users, further bolstering the Ethereum ecosystem.

Ethereum Layer-2 Boom Boosts Confidence

The total value locked (TVL) in Ethereum Layer-2 scaling solutions has reached an all-time high, exceeding $27 billion. This demonstrates the growing demand for faster and cheaper transactions on the Ethereum network, fostering confidence in its potential for real-world use cases.

Whale Alert: $160m Worth of ETH Purchased

Recent on-chain data revealed a wallet linked to Tron founder Justin Sun purchased a staggering $160 million worth of ETH. This move by a prominent crypto figure signifies bullish sentiment among major players, potentially influencing other investors.

Technical Analysis: ETH/USD

While the current momentum is encouraging, a technical analysis reveals potential areas for caution:

• Overbought RSI: The Relative Strength Index (RSI) is nearing overbought territory, indicating a possible price pullback before further upward movement.
• Resistance Levels: $3,000 and $3,200 could act as significant resistance zones in the near term.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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