Ethereum Analyst: Bulls Must Hold $2,500, Spot ETF To Catalyze Demand

Dalmas Ngetich

10 months ago

2 mins read

Ethereum To $4K Again? Analyst Predicts Bull Run As Key Metric Approaches Critical Level

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Ethereum, similar to most altcoins, is under significant selling pressure, struggling to shake off the weakness of early August. Even though there were flashes of strength after the climactic sell-off on August 5, prices are still below $2,800.

The only positive for now, at least looking at the daily chart, is the impressive bulls’ resilience. Despite the wave of lower lows, buyers have soaked in the deluge of selling pressure, holding prices above the $2,500 mark.

The bearish formation, nonetheless, remains, but one analyst thinks the rejection of lower prices below $2,500 is critical.

Ethereum Bulls Must Keep Prices Above $2,500

In a post on X, the analyst said that bulls must hold Ethereum above $2,500 for the uptrend to remain. The round number, looking at price evolution in the daily chart, marks the base of the bull flag.

In the past few trading days since the spike on August 8, Ethereum has been trending below the $2,700 and $2,800 resistance zones. At the same time, support remains clearly at $2,500. As price action consolidates, a bull flag has formed, signaling strength.

ETH bulls must find support at $2,500 | Source: @CryptoMichNL via X

According to the analyst, if buyers keep $2,500 as their anchor, Ethereum is set to fly, reaching $3,150 in the next session. The recovery is welcomed, considering that the sell-off of August 1 through 5 was a bearish breakout formation. This sell-off breached the critical support zones of April to July 2024.

Ethereum price moving sideways on the daily chart | Source: ETHUSDT on Binance, TradingView

Impact Of Spot ETFs and Ecosystem Growth

The leg up, the analyst added, would likely be driven by inflow into spot Ethereum ETFs. Since approving spot ETFs in July, institutions have been keen to find exposure.

Taking to X, one ETF analyst notes that inflows now exceed $2 billion, excluding the outflows from Grayscale’s ETHE. During this period, BlackRock’s iShares Ethereum ETF has been driving demand.

Beyond the inflow from spot Ethereum ETFs, Vitalik Buterin thinks there has been positive progress that may prop up prices. Among these is the drop in gas fees in the mainnet and via layer-2 solutions like Base.

Moreover, the co-founder noted that decentralization efforts by Arbitrum and Optimism is massive. Arbitrum and Optimism recently announced their fault-proofs. However, Optimism reverted to a centralized fault-proof system after an audit report, allowing flaws to be fixed.

Feature image from DALLE, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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