Highlights:
- Ethereum price is in a minor correction, but bears are losing momentum
- Ethereum needs to breach $2929.7 resistance for bulls to take control
- Rising bullish sentiment across the market could boost Ethereum
Ethereum is in the red today, mirroring the slight correction across the market. At the time of going to press, Ethereum was trading at $3169.96, down by 3.52% intra-day. However, the odds are high that Ethereum could be headed higher in the short term.
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Technical Analysis – Ethereum Price Needs to Clear Resistance for Upside Confirmation
Despite its recent price rally, Ethereum has failed to rally through the $3539.4 resistance. In the day, Ethereum is in a minor correction and is headed for the $2929.7 support level.
However, with the broader market regaining bullish momentum, Ethereum is unlikely to drop back to the $2929.7 support. The key target in the short term remains the $3529.4 resistance. A rally through this resistance could see Ethereum price rally to prices above $4000 in the short term.
Ethereum Core Metrics Getting Better
Investment firms, like BlackRock, believe that Ethereum can offer security to assets going into the future. This explains why its developments continue to attract their attention. Among the significant enhancements planned is the development and implementation of the ‘Beam Chain.’ This aims to improve the scalability and finality of the Ethereum blockchain.
As a result of its strong L1 and L2 layers, Ethereum has solidified itself as a leader in decentralized applications and financial systems. Ethereum’s co-founder Vitalik Buterin was quick to note that Ethereum’s security features are quite strong even in tough network conditions. This has made it a go-to solution for both developers and institutional investors.
Ethereum ETFs Record Strong Inflows
Ethereum spot ETFs have also grown substantially, bringing in more than half a billion inflows over just four trading days after the US elections. On election day, Ethereum exchange-traded funds (ETFs) registered $295.5 million inflows. This was a record daily inflow since the ETFs were launched.
Fidelity’s FETH topped the list with an impressive $115.5 million in inflows, followed closely by BlackRock’s ETHA with $101.1 million. Grayscale’s Ethereum Mini Trust garnered $63.3 million in inflows and was the third leading trust of the day in terms of value added.
According to Eric Balchunas, a Bloomberg ETF analyst, things appear to be looking up for Ethereum ETFs. He stated that good days lay ahead for Ethereum, given that institutional demand is beginning to strengthen. He pointed to endorsements from leading players, such as the Michigan Retirement Fund. Recently, the pension fund made headlines for allocating $11 million to Ethereum ETFs, thus becoming the first public pension company to add Ethereum to its portfolio.
Whereas options trading for Ethereum ETFs might increase net investor inflows further, the SEC has yet to approve them. The U.S. SEC has pushed its decision, which means that the final authorization could be pushed back to April 2025. With Trump now in power, the odds of approval are quite high.
Consensys Token Launch Could Boost Ethereum Price
Even better is that Consensys a key player in the Ethereum ecosystem is launching a token. Consensys has revealed that it will launch a token for its layer-2 network called Linea. The new ‘LINEA’ token is intended to thank the sponsors of the network and promote its decentralization. The launch of the tokens is expected at the beginning of the year 2025.
Today we reach a major milestone: Introducing the Linea Association, an independent Swiss non-profit dedicated to advancing our ecosystem’s development and governance. This marks a significant step toward true network decentralization.
For more information, follow @LineaAssn and… https://t.co/Uw58YQwIyQ
— Linea (@LineaBuild) November 13, 2024
They will also support the Linea Association, which is a non-profit organization established to distribute LINEA and regulate protocol development. A decentralized autonomous organization (DAO) is expected to follow, which will enable the community to decide how the tokens are to be distributed and how grants for projects are to be allocated. Such a token could trigger a new wave of excitement in Ethereum and reignite a new wave of token launches on the network.
Recap
A combination of these factors makes the case for an Ethereum price rally through resistance. In the short term, $4000 is a realistic target. As bulls strengthen across the market, Ethereum could be headed to new highs, potentially $10k or higher.
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