•Ethereum (Ethereum-ETH) price expectations remain bullish as its price stabilizes above the $2,500 level despite increasing uncertainty about the market's near-term future. The price of ETH rose to its highest levels since May 2022 last week to trade above the $2,700 level. .
•This rise was supported by a wave of optimism due to the approval of the establishment of Bitcoin spot ETFs in the United States, along with optimism resulting from expectations that similar funds for Ethereum spot trading will see the light by May of this year. However, the market quickly gave up its gains due to investors' reaction of "buy when the rumors spread, sell when the facts emerge."
•Since then, the price of Bitcoin (BTC) has fallen from two-year highs of $49,000 to its current levels near $42,000 as a result of a wave of profit-taking. At the same time, Ethereum was trading around the $2,520 level, down about 7% from its highest levels last week.
•Traders' anxiety has increased as a result of increased profit-taking, which could continue to pressure prices in the near term, but the Ethereum price has so far managed to consolidate above an important support level, which may indicate its strength in the near term.
•Is ETH price holding above a major support level a sign of its strength?
•The price range between 2,400 and 2,450 constitutes a major support area for the Ethereum price. Over the past four days, the bulls have been desperately defending this support area.
•Chart of the price of Ethereum currency - Source: TradingView Although there is no guarantee that this situation will continue, this - at the present time - indicates the strength of the price in the near term. Indeed, chart analyzes indicate that after the price breaks the long-term resistance level to the upside and maintains its position above the $2,100 and $2,150 area, the price is on its way to testing the resistance area at $3,500.
•Ethereum price chart - Source: TradingView Moreover, Ethereum has many positive scenarios during 2024 that may contribute to raising its price, including the upcoming network update that will enhance its scalability, its spot trading funds, and the Federal Reserve’s reduction in interest rates.
•The continued contraction of its supply could also help increase activity on the network and thus increase its price as well, which will increase participation in Ethereum staking operations, which usually results in the removal of Ethereum coins (at least temporarily) from the circulating supply. Indeed, traders should not rule out the possibility of ETH reaching all-time highs this year above the $5,000 level.
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