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Ethereum Price Forecast – US Crypto Reserve Announcement Could Push Ether to $3000

Highlights:

  • Ethereum retests $2500 on US crypto reserve news
  • ETH also boosted by positive news from the Ethereum Foundation
  • Ethereum could rally to $3000 if bulls sustain momentum

Ethereum is in the green today, riding the momentum around the news of a U.S. Crypto Reserve. At the time of going to press, Ethereum was trading at $2353.5, up by 4.57% in the day. Ethereum trading volumes are also rising, up 155% to their current standing at $39.67 billion.

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Trump Acknowledges Bitcoin and Ethereum will be Held in Reserve

Yesterday, President Donald Trump went on Truth Social to say that his planned U.S. Crypto Reserve will include Bitcoin and Ethereum. In his post, Trump stated that the two biggest cryptocurrencies by market capitalization would “be at the heart of the Reserve.”

That statement clarified an earlier announcement that included Cardano, Solana, and XRP. Trump’s latest remarks have clarified an issue that has created a buzz among investors and industry watchers. 

Most people were left wondering whether or not Bitcoin and Ethereum would be included in the reserve, as it was reported previously that Trump was considering a reserve that prioritized U.S.-developed cryptocurrencies. With the confirmation, Ethereum’s price has turned bullish as the broader market gains bullish sentiment.

Legal Experts Analyze the Stockpile Vs. Reserve Distinction Debate

The crypto executive order signed in January by Trump initially mentioned the creation of a digital asset “stockpile.” The difference between a stockpile and a reserve has emerged as a prominent point of discussion among experts. Legal analysts suggest that while a stockpile indicates that the government would retain cryptocurrencies due to law enforcement actions, with a reserve, there is an intention to purchase and hold digital assets actively.

Rebecca Rettig, chief legal officer at Jito Labs, remarked on the distinction even further by indicating that a stockpile is a collection of assets requiring no effort. In contrast, the Treasury Department would actively collect and manage a reserve. That change in wording suggests more significant attention to detail crypto integration into national finance frameworks.

Ethereum Foundation Announces Leadership Changes

Aside from the news concerning the U.S. Crypto Reserve, Ethereum has other positive fundamentals that bolster its bullish sentiments. The Ethereum Foundation made an important announcement recently regarding its leadership structure by appointing Hsiao-Wei Wang and Tomasz Stańczak as co-directors.

Both of these leaders have substantial credentials for the position, with Wang having been a core researcher at the Ethereum Foundation for seven years and Stańczak, who was the CEO of Nethermind, one of the biggest Ethereum execution clients, after his term.

This move in governance is one of the most important for Ethereum as they try to figure out a very challenging world. The network is constrained by many factors, including price fluctuations, the introduction of new value-adding blockchains, and the fear that Layer-2 scaling solutions would bleed the value from the Ethereum base layer. There is an anticipation that the new leadership will shift the goal towards fortifying Ethereum in the changing blockchain world.

Ethereum Foundation’s Operational Financial Adjustments: A Bullish Signal

With the management restructuring, the Ethereum Foundation has modified its financial strategy. On the 13th of February, the foundation deposited 45,000 ETH, approximately 120 million dollars, into DeFi protocols like Aave, Compound, and Spark. This Ethereum community was pleased as the foundation decided to use DeFi services for yield farming instead of liquidating ETH in the markets.

Meanwhile, Ethereum’s roadmap continues to shift along with that of its co-founder, Vitalik Buterin. In a blog dated 23rd January, Buterin provided a plan that included increasing blob counts for expanding transaction capacity along with Layer-2’s subsidizing the base layer. This approach should bring more sustainability and scalability to Ethereum in the long term.

Technical Analysis – Ethereum Price Bulls Lose Steam Post-News

Ethereum rallied on March 2 after news that it would be included in the US Strategic Reserve. The price rallied to a high of $2510.7 from a low of $2182. However, Ethereum appears to be losing that momentum today, mainly due to profit-taking. This has seen the price correct intra-day, but the March 2 bullish candle has yet to be canceled.

Source: TradingView

If bulls regain momentum during the day, a rally to $3000 could follow. On the other hand, if the correction continues and yesterday’s low of $2182 is broken, Ethereum could drop to around $2000 in the short term. Of these two scenarios, a rally to $3000 could follow thanks to an inflow of institutional money now that the US officially embraces cryptocurrencies.

Recap

Ethereum is likely to continue its rally, as it has a multitude of bullish factors at play. The combination of its inclusion in a US cryptocurrency reserve, fast-positive developments in Ethereum’s leadership, and well-thought-out financial adjustments could push Ethereum to new heights in the short to medium term.

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