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Ethereum prices reached a 22-month high of $3,125 during the Monday morning trading session in Asia. It is the highest price the asset has seen since April 2022.
The move has added a further 2.5% gain to the price of ETH, which is now up 36% over the past month.
Ethereum is currently leading crypto markets, which have made 0.5% on the day, with total capitalization reaching $2.1 trillion. This is also the highest markets have been since April 2022.
Ethereum Momentum Moving
On Feb. 26, crypto market analyst Jacob Canfield observed that Ethereum had flipped support and resistance several times and is now targeting the $3,350 level.
With the spot Ethereum ETF deadline in May, “things are getting interesting,” he said.
$ETH – Up only after the $2200 retest at the lows. Flipped multiple S/R’s now.
STill targeting $3333 / $3350 .618 move as per the playbook I posted in October.
Ethereum ETF deadline in May. Things are getting interesting. pic.twitter.com/BrtCl6HeUx
— Jacob Canfield (@JacobCanfield) February 25, 2024
Furthermore, ETH is on the cusp of a historic monthly close, observed analyst ‘Rekt Capital.’ It would be only the second time in history that the asset has monthly closed above the $2,791 level in a bull market, he said.
The asset has been on fire in February, climbing from $2,260 on the first of the month to over $3,100 by the end of it. Trader “Satoshi Flipper” was also bullish on Ethereum, stating:
“$10,000 for 1 token at the blow-off top this bull cycle is already programmed,”
To reach that level, ETH would need to gain 220%, which doesn’t sound too outlandish compared to the recent performance of some of the altcoins.
$ETH is on the cusp of a historic Monthly Close
It would be only the second time in history that #ETH has Monthly Closed above the $2791 (red) level in a bull market#Crypto #Ethereum pic.twitter.com/GS8WO2zjNS
— Rekt Capital (@rektcapital) February 25, 2024
Moreover, Ethereum is also breaking an important resistance level against Bitcoin. The ETH/BTC ratio is at 0.060, which is very close to 0.061, where it will break the weekly supertrend.
BTC has remained flat on the day at $51,530 at the time of writing.
JUST IN: #Ethereum is breaking an important resistance against #Bitcoin. pic.twitter.com/TuPEXCokNz
— Carl From The Moon (@TheMoonCarl) February 26, 2024
ETH FOMO Rising
Fundamentally, Ethereum is still in a very strong position, with staking and restaking narratives leading the way. There are currently around 31 million ETH staked, which equates to more than a quarter of the currency circulating supply.
If a spot ETH ETF is approved, it is highly likely that the assets backing the fund will be staked for further yields. This will reduce the amount of ETH available on markets, causing a supply shock.
Moreover, the network has been mostly deflationary since the Merge, meaning the supply is gradually shrinking.
This article first appeared at CryptoPotato
