Ethereum Price Chasing $5,000 Target As Staked ETH Crosses 31M Mark

Ethereum, the largest smart contracts network in the industry and second-largest cryptocurrency, has been flirting with the $3,800 level for two days now, following a majestic recovery from this week’s lowest point of $3,224. Despite a 2.5% decline across 24 hours, Ethereum price boasts a commendable 8% increase in value in the last seven days.

A 48% drop in the trading volume to $26 billion alongside a 2.45% decline in the market cap according to CoinMarketCap data, underscores weakening interest possibly due to the unresolved stand-off between the bulls and bears at $3,800.

Ethereum Price Prediction: ETH Technical Structure Points To More Gains

Ethereum price holds above some important levels, starting with the previous day’s Value Area Low (pdVAL) in the four-hour range at $3,760.

If this level holds as support, traders would be hoping for a close above the daily open at $3,822 — a move likely to call for more long positions to build momentum to retest the $3,900 resistance area.

The Relative Strength Index (RSI) points to immediate sideways trading to allow buyers and sellers to resolve the ongoing stalemate. If the RSI starts to regain ground toward the overbought region, it will signal the return of the bulls and a further price increase.

If profit-taking activities build up as investors sense growing uncertainty, Ethereum may extend the leg below the pdVAL where it will sweep more liquidity around the support highlighted by the 20-day Exponential Moving Average (EMA) (the line in red on the chart) at $3,692.

Ethereum price chart | Tradingview

FOMO will likely grip investors as the Dencun upgrade launches on the mainnet on March 13, which is set to further revolutionize Ethereum as a proof-of-stake (PoS) protocol.

As reported by CoinGape, the Dencun upgrade will see Ethereum address the congestion issue, reduce transitions on layer networks significantly, and enhance scalability among other features.

The Money Flow Index (MFI), is a technical tool worth keeping an eye on. Although it’s neutral and falling gradually, looking out for a rebound would signal the next pump in ETH price. Note that the MFI indicator monitors the inflow and outflow of money in Ethereum.

Ethereum Staked Assets Surpass 31 Million

The total amount of Ether staked within the Ethereum ecosystem has reached a new milestone of 31 million ETH for the first time in history, IntoTheBlock analytics show. Since the smart contracts platform fully transitioned to a PoS mechanism from a proof of work (PoW), staking trends have been on an upward roll.

Staked Ethereum | IntoTheBlock

Staking has a long-term positive impact on the price of an asset. Besides affirming bullish sentiment, it removes coins from active supply thus reducing the overall potential selling pressure.

Therefore, as more holders lock up their tokens to participate in securing the network and earn rewards in the process, the reduced circulating supply may translate to substantial price increases.

In the grand scheme of things, Ethereum has the potential to ascend to its record highs and launch into price discovery mode. The Dencun upgrade is only one of the factors likely to keep Ethereum on its upward trajectory. Others include the possibility of a spot ETH ETF and the Bitcoin halving which often has a massive impact on the entire crypto market.

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