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- Wall Street analysts led by Bernstein broker believe there is a 50 percent approval chance for spot Ethereum ETFs by May in the United States.
- Ether’s price reaching $3k for the first time in more than two years signals the beginning of the much-anticipated altseason.
Ethereum (ETH) price has officially begun the race to $10,000 after reaching $3k for the first time since May 2022. Ethereum price has as a result recovered all the losses induced by the collapse of Terra Luna UST. Furthermore, the weekly Relative Strength Index (RSI) has rallied above the 70 level for the first time since May 2021, thus confirming the bulls are in control.
Remarkably, Ethereum’s price has outshined that of Bitcoin in the past week, with the latter increasing by 4.4% and the former by more than 12%. The notable rise in Ethereum price has been attributed to improved fundamentals and heightened demand from both institutional investors and retail traders. Moreover, ETH is the primary source of liquidity for the majority of web3 tokens and NFTs.
Top Reasons Ethereum Price Rallied to $3k for the First Time in Two Years
Ethereum price rallied more than 88% since October last year to trade above $2,900 on Wednesday fueled by several notable fundamental factors. On the top list, the Ethereum investment products have registered notable cash inflows from institutional investors in the past few months. The approval of spot Bitcoin exchange-traded funds (ETF) in the United States has raised the odds of Ether-based ETFs soon.
Worth noting that the same fund managers that applied and received approval for spot BTC ETFs in the United States are now racing to offer Ether-based products. As CNF recently reported, Bernstein analysts believe there is a 50 percent chance the United States Securities and Exchange Commission will approve the spot Ether ETFs by May.
The Ethereum price registered notable gains in the recent past fueled by heightened crypto cash rotation as more investors bet big on web3 mass adoption. With the Ethereum network already a deflationary ecosystem through the burning mechanism akin to the Bitcoin halving, the value of existing coins will continue to skyrocket.
Meanwhile, the Ether price has enjoyed a bullish outlook in the recent past as the Ethereum core developers anticipate enabling its largest upgrade since Shanghai dubbed the Dencun upgrade in the coming weeks. Notably, the Dencun upgrade is primarily meant to lower transaction fees on Ethereum’s layer-two ecosystem following proto-dank sharding.
ETH Price Analysis and Short-term Targets
The Ethereum price has only begun its long journey to a parabolic move expected later in the confirmed crypto bull cycle. From a technical standpoint, ETH bulls are well incentivized to rally above $3,000 in the coming months.
According to the latest market data, ETH price has rallied over 25% in the past two weeks to trade at around $2,940 on Wednesday.
Kenny Hearn, SwissOne Capital’s chief investment officer, noted;
We are very close in this move to levels around $3,150-$3,300. The next level after that would be $3,600 and we think this is quite easily attainable in the next month or so as the alts continue to play catch up,
