Ethereum’s Mysterious Surge: What Secret Forces Are Driving ETH’s Soaring Ascent?

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Ethereum’s native token, Ether (ETH), has risen by 7.51% recently, reaching an intraday high of $3,421 on January 24. This increase comes as ETH’s price maintains above a key support zone and recaptures its 100-day simple moving average (SMA) on the daily chart after dipping below it the previous week. The rise in Ethereum aligns with a broader market recovery for cryptocurrencies. Bitcoin (BTC) increased by over 2.6% in the last 24 hours, trading above $105,000, while other altcoins like XRP and Solana also saw price increases.

The overall cryptocurrency market capitalization has grown by 3% in the past 24 hours, reaching $3.63 trillion. This uptick correlates with favorable sentiment within the market following a new executive order from the US President, concentrating on enhancing American leadership in digital financial technologies. This development has been interpreted as a sign of government support for cryptocurrencies, including Ethereum.


Ethereum’s price increase also stems from substantial inflows into US-based spot Ethereum exchange-traded funds (ETFs). These investment products have experienced consistent positive inflows over the past six days, amounting to $396.5 million, with BlackRock’s ETHA fund being a significant contributor to this influx.

Market analysts are optimistic about Ethereum’s future price trajectory, with some predicting that ETH could reach as high as $7,000 in the first quarter of 2025. This forecast is bolstered by a crypto-friendly political climate and ongoing growth within the Ethereum ecosystem. From a technical perspective, Ethereum is trading above a strong support zone between $3,200 and $3,390. If the token maintains this level, it may climb above the 50-day SMA at $3,502, with further potential upside targets noted at $4,109.

Conversely, if the price falls, the 100-day SMA at $3,260 could offer support, followed by levels around $3,000 and the 200-day SMA at $2,986.