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The second-largest cryptocurrency by market capitalization, ETH, is currently seeing a massive jump in its price after being dropped to $2132 due to economic uncertainty. As of now, ETH price has recorded a gain of 5.5% and trading around $2728. This surge has stirred excitement among crypto users questioning the reason behind the surge.
Cboe files for 21Shares Ethereum ETF
One big reason for Ethereum’s price surge is a new ETF proposal. Recently Cboe BZX Exchange has filed a request with the U.S. Securities and Exchange Commission (SEC) to allow staking for the 21Shares Core Ethereum ETF. If approved, this would let Ethereum holdings earn rewards while staying secure with the custodian.
This staking method reduces security risks and could attract more institutional investors. Since the SEC has up to 240 days to decide.
Whale Accumulating ETH Massively
Ethereum is also getting a boost from large whales. Recent on-chain data shows that over 600,000 ETH was bought by whales last week alone. This suggests that major whales are positioning themselves ahead of a potential price breakout.
When whales buy in large amounts and move their holdings off exchanges, it reduces the available supply. This can create buying pressure, pushing the price higher.
Ethereum L2 Growing Adoption
Another key factor supporting Ethereum’s rise is the growing adoption of Layer 2 solutions. Recently, Tether announced it will use Ethereum’s Arbitrum network to support a new cross-chain system.
This move strengthens Ethereum’s position as a leading blockchain for financial applications. With lower transaction costs and faster processing, more companies may start using Ethereum’s Layer 2 solutions, boosting its value.
Ethereum Eye For $3000
Looking at Ethereum’s price charts, analysts see strong potential for further gains. ETH has been trading within a key range since early 2024, holding support near $2,200 while facing resistance around $4,100.
For Ethereum to continue its upward trend, it needs to break above the $2,817 to $3,000 range. If ETH secures support at this level, it could set the stage for a rally toward $4,000.
However, technical indicators like the Relative Strength Index (RSI) and Stochastic Oscillator suggest that bearish momentum still exists, meaning traders should remain cautious.
