Ethereum prices rose by 7% in the past 24 hours to $3,258 per coin, and trading volume surged by 53% to $218.8 billion as of 5 a.m. ET.
Since February 24, ETH price has risen by more than 12%, growing almost uninterruptedly, climbing from the $2,900 support level.
One potential reason for the coin’s strong performance could be that institutions are beginning to prefer Ethereum over Bitcoin.
Bybit Research said in a recent report that since December, there has been a significant shift in sentiment, with institutions beginning to favor ETH over BTC. The report said that in January, institutional investors allocated 39.82% of their holdings to ETH, while 39.49% was allocated to Bitcoin.
While the difference is only small in percentage, it marks a historic shift away from Bitcoin and toward Ethereum, the second-largest cryptocurrency by market cap. The future Dencun upgrade is cited as a key reason for the change.
Ethereum Price Prediction
The price of Ethereum has seen strong growth over the past few days, and it seems that it has not yet reached its peak. The price is still growing, although there are some technical indicators that suggest that ETH may soon turn around and lead to a minor correction.
For example, the coin’s Bollinger Bands are beginning to narrow slightly, which is often seen as a bearish signal. This is still very weak at the moment, but there are signs that they may continue to close in the coming hours.
Meanwhile, the coin’s relative strength index (RSI) level is 67.57, very close to the overbought region, which is when traders usually start to take profits, meaning they may sell their ETH soon.
However, it is worth noting that the bullish pressure remains quite strong even though the RSI value has been moving higher over the 24-hour period, and it has remained consistent with only minor fluctuations.
This in turn suggests that ETH could continue to climb for a while, especially if institutional investors are accumulating large amounts of supply, as Bybit’s report suggests.
If this is the case, retail investors and traders are likely to follow their lead, which means that Ethereum’s price rise is caused by fundamental factors that sustain the positive market sentiment, while technical indicators are currently being ignored.
Even so, ETH has experienced a pretty sharp and sustained rally over the past few days, which is usually followed by a correction. The only question is how high it can go before a correction begins.
The coin’s current price is the highest point since April 2022, when its price rose to the $3,450 resistance level. Although ETH is currently at $3,258, relatively close to this resistance level, it is unlikely that ETH will climb back to this resistance level without a strong new impetus.
On the contrary, ETH currently seems to be struggling to stay above $3,250, which shows that this resistance level has not been completely broken. At the same time, technical indicators show that the bulls are weakening, so a correction may occur in the coming hours.
Projects that are expected to replace Ethereum
Despite the massive rise in Ethereum prices, few new projects have managed to attract the attention of a 100x increase.
But one such example is Sponge V2 (SPONGE), a new version of a token called Sponge that was launched in 2023 and experienced a massive 100x rally.
Now, the developers have decided to launch a second version of the project, the original version has ceased operation, and the new V2 version will be bigger and better than the first one.
The project has already converted V1 tokens to V2, enabling users to stake and receive rewards instantly.
Meanwhile, those who missed out on V1 SPONGE can now buy V2 directly with Ethereum and USDT and stake it.
To date, the project has recorded $11.7 million in SPONGE tokens staked and converted, a number that is increasing every day.
Visit the SPONGE pre-sale page.
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