Ethereum, the second-largest cryptocurrency, has increased by 59% so far this year, according statistics from CoinGecko. On the other hand, Bitcoin has increased by 84% year to date.
The cryptocurrency market had a huge price comeback last week as a result of BlackRock’s proposal for a Bitcoin spot ETF.
ETH’s price has been rising steadily since June 15th. After ETH resolved a bullish pennant, which witnessed three straight days of gains, with highs of $1,901 reached on June 21 before the bulls paused, the gains increased.
Currently, the price of Ethereum is steadily forming a new pennant, which points to continued consolidation. ETH’s price has been ranging between $1,861 and $1,936 during the last five days.
With a target over $2,000 in mind, Ethereum may once again resolve its bullish pennant to the upside. On the negative side, 3.36 million ETH were purchased by 2.8 million addresses at the $1,855 level, where Ethereum has strong support.
ETH was trading at $1,897 at the time of writing, slightly lower from the previous day.
What to expect
Data from CoinShares shows that weekly inflows into digital asset investment products reached $199 million, the highest level since July 2022. The majority of the prior weeks’ straight outflows were reversed by this.
Compared to Bitcoin, Ethereum experienced inflows of $7.8 million, which may indicate that there is now less demand for Ethereum than there is for Bitcoin.
Despite this, Ethereum’s price may see catalysts in the upcoming days. The biggest bank in Hong Kong, HSBC, has reportedly become the first bank to permit its clients to buy and sell Bitcoin and Ethereum ETFs listed on the Hong Kong market.
In order to lower the cost of ETH Layer 2 solutions, Ethereum’s EIP-4844, also known as “proto-danksharding,” is anticipated to be deployed with the Dencun upgrade, which is anticipated to occur in the later part of Q3 or early Q4 of 2023.
Proto-danksharding’s deployment is expected to increase the ETH network’s economic activity, which is predicted to lead to increased value accumulation over the medium term.
