Ethereum Price Holds Above $2600, Bulls Eyes $2800Ethereum (ETH) has traded mostly flat above $2600 on Thursday, after finding support at key levels on Tuesday. Increased fees indicating higher network usage, a record high in ETH staking in Q3, suggesting more holders are seeking yield, all point towards potential upside in the future
Ethereum Price Holds Above $2600, Bulls Eyes $2800
Ethereum (ETH) has traded mostly flat above $2600 on Thursday, after finding support at key levels on Tuesday. Increased fees indicating higher network usage, a record high in ETH staking in Q3, suggesting more holders are seeking yield, all point towards potential upside in the future.
Ethereum Shows Signs of Optimism
A joint report released on Wednesday by Coinbase Institutional and Glassnode highlighted some optimistic signs for Ethereum. The report showed Ethereum regaining significant market share among layer 1 (L1) blockchains, rebounding from a low of 9% at the end of August to a high of 40% at the end of September. This increase indicates a greater blockchain usage of the Ethereum network.
After weeks of outflows, US spot Ethereum Exchange Traded Fund (ETF) flows rebounded at the end of Q3, suggesting a mild resurgence in institutional demand for ETH.
Another optimistic sign shown by the report is that Ethereum staking hit a record high in Q3 as more holders look to generate yield from their holdings. Finally, the market sentiment switched from greed to fear as Ethereum prices pulled back, potentially setting the stage for the next rally.
Ethereum Price Prediction: Bulls Eye $2800
Ethereum's price surged 6.5% Monday, breaking through daily resistance at $2461 and closing above the 50-day Exponential Moving Average (EMA). ETH rejected a test of the 50-day MA at $2541 on Tuesday and rebounded. At the time of writing Thursday, ETH's price is slightly higher, trading around $2600.
If the 50-day MA at $2541 continues to hold as support, ETH could continue its rally and retest the August 24 high of $2820. The Relative Strength Index (RSI) indicator on the daily chart is at 59, above its neutral level of 50, indicating that bullish momentum is strengthening.
However, if Ethereum's price closes below the daily support level at $2461, ETH could extend its losses by 13% to retest the September 6 low of $2150.
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