Ethereum surges 8% to $2,700 as staking and institutional interest rise

Ethereum has surged by 8% in the last 24 hours, reaching $2,700 for the first time in nearly two weeks. This price increase is driven by several factors, including a rise in the number of people staking their coins, increased institutional involvement, and positive technical indicators that suggest a potential rise to $3,000.

According to Beaconcha.in, over 34.65 million ETH, approximately 30% of the total supply, is now staked on the Beacon Chain. This surge in staking is attributed to long-term holders becoming more confident and opting to earn from their holdings rather than selling.

Institutional investors are also becoming more active in the Ethereum market. BlackRock’s iShares Ethereum Trust (ETHA) has not experienced any outflows for 23 consecutive trading days. The firm has added $500 million in ETH, bringing its total holdings to 1.5 million ETH worth $2.71 billion. Additionally, Ethereum-based ETFs continue to attract investments, having brought in $296 million last week.

Technical charts also indicate a bullish trend. Ethereum has broken above the midline of the Gaussian Channel, and a bullish divergence is forming. This pattern has historically preceded significant rallies in 2020 and 2023. If the current trend persists, analysts expect the price to rise to between $3,100 and $3,600.

However, the $2,700–$2,800 level is a critical resistance point for Ethereum. A major breakout above this level could trigger a rally in the altcoin sector. Conversely, if Ethereum fails to maintain this level, it could drop back to the $2,400–$2,500 support zone.

The current price of Ethereum, while not at its all-time high, remains attractive to investors looking for long-term holdings or short-term trading opportunities. A strong foundation and growing market confidence may position Ethereum for another significant shift in the cryptocurrency landscape.