Ether, the native token of the Ethereum blockchain, saw a significant surge in price, climbing past $3,000 during European trading hours. This increase comes after a period of decline, with the market showing signs of seller exhaustion and a potential bullish turnaround.
One key indicator of this turnaround is the fact that Ether is no longer trading at a discount on the Nasdaq-listed Coinbase compared to Binance. This shift suggests that sellers may be losing steam, and the price of Ether could be stabilizing. Additionally, the discount to net asset value for the Grayscale Ethereum Trust has also disappeared for the first time in over two years, indicating increased investor confidence and demand for Ether-related investments.
The impending debut of spot Ether ETFs in the U.S. this month is also fueling optimism in the market. Analysts predict that these ETFs will unlock billions in investor demand for Ether and raise awareness of the Ethereum blockchain. This increased interest could lead to a significant inflow of funds into the market, similar to what was seen with the introduction of Bitcoin ETFs.
In terms of price action, Ether’s move above $3,000 is particularly noteworthy as it followed a successful defense of the crucial support zone of $2,800-$2,850. Buyers have consistently defended this level, establishing it as a strong support zone. The emergence of long-tailed daily candles at this support level indicates that sellers are struggling to push the price lower, suggesting a potential reversal in the near future.
Furthermore, the presence of a double bottom pattern on the hourly chart is another positive sign for Ether bulls. This pattern, which resembles the letter “W,” typically occurs at the end of a downtrend and indicates a potential reversal to the upside. The fact that prices have tested and found support at the same level twice reinforces the idea that sellers are facing resistance.
Overall, the recent price surge in Ether, coupled with positive indicators such as the disappearance of discounts on exchanges and the formation of bullish patterns on price charts, suggest that the cryptocurrency may be poised for a bullish trend. With the upcoming launch of spot Ether ETFs in the U.S., investor interest in Ether is expected to grow, potentially driving prices even higher in the coming weeks.