Ethereum price analysis confirmed a positive correlation with Bitcoin price this week such as as the latter topped $52,000, ETH reclaimed the $2,800 level for the first time since May 2022. Apart from the positive outlook in BTC, investors are likely backing the uptrend and speculating on the upcoming Dencun upgrade and the spot Ether ETF.
Ethereum Price Analysis: Can ETH ETF Hype Drive Prices Higher?
The Ethereum community is waiting for the developers to announce the date for the Dencun upgrade mainnet launch following the third successful test net debut on February 7.
With this upgrade developers hope to significantly boost the protocol’s scalability while reducing transaction fees for layer 2 networks like Arbitrum and Polygon.
Although the upgrade is vital for Ethereum, it is not the only factor fuelling the rally in February. Investors believe that a spot ETH ETF is highly likely following the approval of Bitcoin ETFs on January 10.
The crypto market holistically flipped bullish in Q4 last year as drums beat harder ahead of the BTC ETF greenlight. As the second-largest digital asset’s ETF becomes apparent, Ethereum price could explode to new highs.
Moreover, the Bitcoin halving due in April is another factor expected to ignite impressive rallies in Bitcoin and altcoins. The parabolic upswing in the price of BTC in 2021 to $69,000 triggered an equally strong rally in Ethereum price to $4,878. With this in mind, investors look forward to Ether moving in tandem with BTC price to new record highs.
What Do Technical Indicators Say About Ethereum Price
Ethereum price is mainly in bullish hands based on the current technical structure backed by the up-trending Relative Strength Index (RSI), entering the overbought region on the weekly chart.
All the applied bull market indicators ranging from the 20-week Exponential Moving Average (EMA), the 50-week EMA, and the 200-week EMA reinforce the bullish theory.
Ethereum price chart | Tradingview
Resistance shown by the red band must be weakened for ETH to gain momentum and effectively pump the gas for a second weekly breakout above $2,800.
If successful, this second reclamation of the $2,800 hurdle would significantly boost investor confidence in the technical outlook, thus propping Ethereum price for highs above $3,000. The next important resistance after reclaiming the $3,000 S/R lies in the range between $3,500 and $3,600.
Insights behind the scenes using data from IntoTheBlock back this bullish narrative where Ethereum boasts a massive support range running from $2,378 to $2,464. At least 1.49 million addresses bought 4.87 million ETH at an average price of $2,418.
Ethereum S/R Levels | IntoTheBlock
From the chart, the path to $3,200 is relatively smooth, with only minor stumbling blocks lined up. A weekly candle close above $2,800 could blast ETH beyond $3,000, starting a new recovery phase.
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