Ethereum (ETH) enthusiasts and investors are keeping a close eye on the digital asset as it makes a bid to break out. Analyst Ali took to Twitter to ask a burning question: When will Ethereum break out? The answer may lie in the formidable supply wall standing at $1,960. Intotheblock reported that a staggering 1.14 million addresses have collectively accumulated nearly 33 million ETH at this level.
ETH closely followed Bitcoin (BTC) in notching substantial gains over the past week. ETH’s bullish momentum, which began at the $1,550 support level, has propelled its value by 20%, now trading comfortably above the critical $1,800 mark. This shift in the $1,800 level from resistance to support has encouraged the bulls to set their sights on the next milestone: $1,900.
The path to this milestone wasn’t without its challenges. Bulls had to navigate key price barriers at $1,680 and $1,745, but they effortlessly cleared these hurdles with a single bullish candle on the 12-hour timeframe. This surge reflected a significant buying pressure, corroborated by the Relative Strength Index (RSI) reading of 74.
The On Balance Volume (OBV) also saw an uptick, further bolstering the bullish movement past the once formidable resistance at $1,800. Even after a minor pullback on October 24th, the bulls managed to flip the level into support, leaving the possibility of further gains, with $1,900 as the next target, especially if Bitcoin continues its upward trajectory beyond $35,000.
Institutional Interest In Ethereum
Adding to the excitement is the increasing buzz surrounding the potential approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States. Ethereum’s whale activity is also sending strong signals supporting the bullish rally.
Notably, on October 24th, the U.S. Securities and Exchange Commission (SEC) acknowledged Grayscale Investments’ Ethereum ETF application, putting it under review in response to a court directive. This development has fueled speculation about the SEC’s possible approval of a spot Bitcoin ETF by early 2024.
Such an approval would set a significant precedent for Bitcoin and, in turn, for Ethereum. Analysts are projecting that Ethereum could be next in line following a nod for Bitcoin, potentially within the next 6 to 12 months.
Ethereum’s appeal to institutional investors is multifaceted, thanks to its environmental, social, and governance (ESG) compliance and attractive native staking yields. This promising outlook has Ethereum enthusiasts eagerly awaiting the next chapter in its journey to new heights.