#Write2Earn #ETHER ’S STRUGGLE AT $3K: INSIGHTS AND OUTLOOK FOR INVESTORS
#Ethereum is facing resistance at the $3,000 mark, but indicators suggest a potential continuation of the bullish trend. The recent surge in Ether's price, climbing 29.7% from February 6 to February 20, is attributed to decreasing supply fueled by rising demand for staking, decentralized finance (DeFi) applications, and the network's proof-of-stake burn mechanism.
Despite Ether's impressive rally to $3,000, the focus shifts to whether it can reclaim the coveted $3,300 level last observed in March 2022. Crypto investor Ryan Sean Adams speculates on X social network that Ethereum's demand season is yet to come, suggesting that the introduction of a spot Ether exchange-traded fund (ETF) could further boost its price amid declining supply.
Analyzing supply data, there's been a decrease of 18,960 ETH in total coins circulating over the past 30 days, indicating a potential scarcity in available ETH for sale. However, net withdrawals on exchanges have been preferred over deposits since February 15, potentially influencing price dynamics. Despite these trends, Ether's price remained relatively stable leading up to January 5, suggesting that factors such as staking and DeFi demand may not directly impact available supply.
The potential approval of an ETF could drive a rally in Ether's price, with approval odds estimated between 50% and 80%.
The recent #Starknet ( $STRK ) airdrop, for example, led to a decline in enthusiasm for upcoming Ethereum token launches due to significant sell pressure and controversies surrounding eligibility and supply release.
Analyzing Ether futures contracts compared to spot markets indicates continued bullish sentiment, with the one-month futures premium remaining above 14% since February 17. Despite this optimism, it falls short of the 25% premium seen in early January, suggesting a cautious yet positive outlook for Ether's price surpassing $3,300.
