Crypto Quill

Ethereum is holding steady above $2,700, eyeing a major breakout that could push it toward the $4,000 mark. The latest institutional activity and the SEC’s acknowledgment of a potential staking feature for Ethereum ETFs have fueled optimism. But can Ethereum sustain this momentum?

Ethereum’s Price Action and Resistance Levels

Ethereum’s recent price movement is forming a classic triangle pattern on the 4-hour chart. This setup suggests a potential breakout, with the altcoin hovering around $2,741 at the time of writing.

Resistance is building at $2,761, where the 100 EMA line stands firm. A decisive move above this level could set Ethereum up for a run toward $2,900, where the 200 EMA line presents another hurdle.

Adding to the bullish case, the 4-hour RSI has crossed the 50 mark, edging toward overbought territory. This suggests that buying pressure is mounting, increasing the probability of a breakout.

Big Money Moves: Institutional and Whale Activity

Institutional investors are making their presence felt in the Ethereum market. On February 19, Fidelity bought $24.47 million worth of Ethereum, while Grayscale offloaded $5.45 million. Despite the selling pressure from Grayscale, the total net inflow into Ethereum ETFs surged to $19.02 million.

The U.S.-based Ethereum ETFs now hold a combined total of $10.31 billion in assets, accounting for roughly 3.14% of Ethereum’s market cap. That’s a significant share, underscoring the growing demand from large investors.

Adding to this momentum, blockchain analyst Ali Martinez reported that whales have accumulated 430,000 ETH in the last 72 hours. This surge in accumulation signals a shift in sentiment, possibly hinting at a major rally ahead.

SEC Acknowledges Ethereum ETF Staking Request

The SEC has officially acknowledged the 19B-4 filing from Cboe BZX Exchange, which proposes a staking feature for Ethereum ETFs. The filing, submitted on behalf of 21Shares, marks a crucial step toward regulatory clarity.

21Shares, which currently holds $19.85 million worth of Ethereum, is pushing for a model that would allow staking rewards to be distributed to ETF holders. If approved, this could significantly impact Ethereum’s attractiveness as an investment asset.

Can Ethereum Hit $4,000?

With institutional interest surging and a potential ETF staking feature in the works, Ethereum is positioned for a strong move. But how high can it go?

• A successful breakout above $2,900 could open the door for Ethereum to reclaim the $3,000 mark.
• Beyond that, if momentum continues, the next key target stands at $3,500, with $4,000 as a major psychological level.
• However, failure to break above resistance levels could see Ethereum retesting crucial support levels at $2,400 and $2,200.

With all eyes on Ethereum’s price action, the coming days could determine whether the biggest altcoin is ready for its next leg up—or if another consolidation phase is on the horizon.