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Ethereum price tops $2,400 as 25% of ETH supply is staked and ETF applicants amend filings

  • Ethereum price hit a local peak of $2,444 on Thursday as ETF applicants’ Ark Invest and 21Shares amend Spot ETH filing. 
  • 25% of Ethereum supply is staked, reducing ETH tokens in circulation and the selling pressure on the altcoin.
  • ETH price rally to 2024 peak above $2,700 is likely in its uptrend. 

Ethereum price rallied on Thursday as two major events catalyzed ETH gains. Ethereum’s Exchange Traded Fund (ETF) applicants, Ark and 21Shares amended their Spot ETH filings, sparking anticipation of an approval. 

ETH price climbed to $2,444 on Thursday, as ETH continues to form higher highs and higher lows. 

Also read: XRP Price faces threat of fall below $0.50 as XRPLedger AMM amendment is uncertain

Two catalysts drive gains in Ethereum price

Supply of Ethereum tokens staked hit the 25% mark on Thursday, according to Lido Finance’s recent tweet. This is a key milestone for Ethereum as the staked supply represents Ether that has been removed from circulation. This typically reduces the selling pressure on Ethereum. 

The second catalyst is the amendment of Ethereum ETF filings by applicants’ Ark Invest and 21Shares. This has sparked anticipation of Ethereum ETF approval. Just as Spot Bitcoin ETF approval by the SEC ushered in a large volume of capital inflow from traders, Ethereum holders expect a similar occurrence post an ETH ETF approval.    

Ethereum price could rally to 2024 high

Ethereum price is in an upward trend starting January 23. The altcoin formed higher highs and higher lows, as seen in the price chart below. The closest resistance is the 50% Fibonacci Retracement level of the decline between January 12 and 23, at $2,440.09. 

If Ethereum price breaks past resistance at $2,440.09, the next target is the $2,500 level. The 2024 high of $2,715.29 represents nearly a 9% rally from $2,500. 

Ethereum’s Relative Strength Index (RSI) is 58.07, sustaining above the neutral level. The Moving Average Convergence/ Divergence (MACD) indicator shows green bars, suggesting there is momentum that supports ETH price gains. 

ETH

ETH/USDT 1-day chart 

A daily candlestick close below the support at $2,267 could invalidate the bullish thesis for Ethereum. ETH price could then find support at the January 23 low of $2,164.89. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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