Ethereum gained more than 7% in the last 24 hours, breaching the $2,700 mark after almost a couple of weeks. The coin was trading in this region in late May, where it reached $2,771. Analysts attribute this sudden spike to an increase in staking activity, institutional participation, and other positive technical factors. According to Beaconcha more than 30% of the total amount of Ethereum has been staked. Currently, there are over 34.65 million ETH staked.
ETH/USDT 4-Hour Chart (Source: Tradingview)
On a 4-hour chart, ETH jumped from $2,540 to $2,700 with two large green candlesticks, which shows the presence of the bulls. However, after hitting this threshold, the Bollinger band indicator signals an overbought condition, which basically means that the coin is overbought in the market and it will be due for a market correction. In the event the market corrects the prices, ETH may look for support close to $2,597. But the support level here is very weak, and it raises the question whether this support would keep ETH from falling further.
Although the technical aspect looks gloomy, the fundamentals are quite positive, as institutional investors like BlackRock are interested in ETH. In recent times, the company bought $500M worth of ETH in 10 days.
Disclaimer: Please note that all predictions are based on data analysis and are provided for informational purposes only. They do not constitute financial advice. Altcoin Desk is not liable for any financial decisions you make.
