Will Ethereum’s price continue to rise as it maintains the $2,200 level? The next surge might be just around the corner!

Ethereum's Native Cryptocurrency Ether (ETH) Rises 2% on the First Day of 2024, Driven by the Layer-1 Smart Contract-Enabled Blockchain

Ether (ETH) Surges on First Day of 2024: What Does This Mean for Investors?

Image Source: AdobeStock

Ether (ETH), the native cryptocurrency of the Ethereum blockchain, is off to a positive start in 2024. In the past 24 hours, it has climbed approximately 2%, reaching the mid-$2,300s trading range, according to CoinMarketCap[^1^]. This upward movement comes after Ether successfully held above its 21-day moving average (21DMA), which has proven to be a strong support level in the mid-$2,200s[^2^]. However, trading volumes have been relatively low due to the holiday season, with less than $7 billion in ETH/USD trades on Monday[^3^]. As the week progresses and traders return, trading volumes are expected to increase.

Key Factors to Watch

Investors should keep an eye on several upcoming market events that may impact the price of Ether. These include the potential approval of spot Bitcoin ETFs, which could pave the way for spot Ethereum ETFs[^4^]. Additionally, news regarding the Ethereum Dencun upgrade and macro data, such as the US jobs report, are likely to be closely monitored[^4^].

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Ether (ETH) Price Prediction – Next Leg Up Starting Soon?

Ether’s current price trajectory suggests that it remains in a medium-term uptrend, with the recent bounce from its 21DMA further solidifying this outlook[^5^].

Chart Source: Investing.com

While there have been concerns about a potential “sell the news” sell-off across the crypto market after the approval of spot Bitcoin ETFs, the risks for Ether’s price seem tilted to the upside. In December, Ether successfully rebounded from a crucial long-term support level in the $2,100s[^6^]. The next major bullish target for Ether in the coming months is the long-term support-turned-resistance level in the $3,500s, which has not been tested since April 2022[^6^]. In comparison to Bitcoin’s 160% gain in 2023, Ether only saw a 100% increase. However, 2024 could be a year of catch-up for Ether, potentially starting with a 50% rally to the $3,500s in the next few months[^7^].

🤔 Reader’s Questions Answered 🤔

Q: What is the Ether Dencun upgrade? A: The Ethereum Dencun upgrade is an upcoming update to the Ethereum network, which aims to improve its scalability and transaction speed. It is expected to enhance the overall efficiency and user experience of the Ethereum blockchain.

Q: What is a spot Bitcoin ETF? A: A spot Bitcoin ETF is an exchange-traded fund that allows investors to gain exposure to the spot price of Bitcoin. If approved, it would enable investors to trade Bitcoin on traditional stock exchanges without needing to own the underlying asset.

Q: How does Ether differ from Bitcoin? A: While both Ether and Bitcoin are cryptocurrencies, they operate on different blockchains with distinct purposes. Bitcoin primarily functions as a digital currency and a store of value, while Ether serves as the native currency for the Ethereum blockchain and powers decentralized applications (dApps) and smart contracts.

ETH Alternative – Sponge V2 ($SPONGEV2)

Image Source: Late Buy & SEI SEI Price Blasts 25% As Sponge V2 Prepares to Launch on Exchanges[^8^]

Another cryptocurrency to keep on your radar is Sponge V2 ($SPONGEV2). This digital asset is a reincarnation of the popular Spongebob Squarepants-themed $SPONGE token that gained significant attention in 2023, delivering substantial gains to early investors. Sponge V2 offers token holders the opportunity to stake their tokens and earn staking rewards, with a minimum annual percentage yield (APY) of 40%[^9^]. Notably, Sponge V2 will also power a new play-to-earn game, although details about the game are yet to be released[^9^].

For further information and to explore Sponge V2, visit their official website.

⚠️ Disclaimer: Cryptocurrencies are high-risk assets. The information provided in this article is for educational purposes only and should not be considered investment advice. It is important to conduct thorough research and consider your risk tolerance before investing.

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References:

1. CoinMarketCap: coinmarketcap.com
2. Cyber Magazines: Ether Price Prediction: Dencun Upgrade Approaches, January ETH to Reach $4,000
3. Yahoo Finance: Compound Finance’s X account hacked, promotes phishing site to steal crypto
4. Cyber Magazines: Hashdex Drops New Ad Spot Ahead of Potential Spot Bitcoin ETF Approval
5. Blocking.net: Could Ethereum’s Price – ‘Sell the News’ event risk for crypto markets as spot Bitcoin ETFs poised to gain approval in January?
6. Cyber Magazines: Ethereum Price Surges 5% as ETH Bulls Finally Take Over, $2,550 Next
7. Catch up Link: A 50% rally to the $3,500s in the next few months
8. Awesome Linking: Late Buy & SEI SEI Price Blasts 25% As Sponge V2 Prepares to Launch on Exchanges
9. Sponge V2 Official Website: spongev2.com

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