Ethereum hit a one-week high of $2,144 on Friday after a strong debut by investment manager BlackRock’s Ethereum ETF.
Conclusion
- Ethereum price broke above the $2,100 resistance level on March 13.
- BlackRock’s ETHB ETF generated $15.5 million in trading volume on its launch day.
- The bullish SMA crossover is close to confirmation on the daily chart.
According to crypto.news, the price of Ethereum (ETH) rose nearly 6% on Friday morning Asian time to $2,144 before stabilizing around $2,100 at the time of writing. At this valuation, the second-largest cryptocurrency asset by market value is 11% off its weekly low and more than 18% off its February low.
The rally gained momentum after BlackRock posted a very strong debut with the iShares Staked Ethereum ETF (ETHB) on the Nasdaq. The first Ethereum ETF from the world’s largest asset manager to include the stock generated nearly $15.5 million in trading volume on its first day.
For context, the iShares Staked Ethereum Trust (ETHB) operates by holding Ethereum spot and dynamically 70% to 95% of its resources directly on the Ethereum network. This structure allows investors to receive 82% bonus through monthly distributions. This is fundamentally different from existing Ethereum ETFs, where investors are denied a premium, making this older product much more attractive.
As such, there is a strong possibility that investors could start investing in other ETH ETFs, including BlackRock’s ETHA, which does not offer any stake in the new ETHB.
Investors who were previously left out due to lack of yield can now enter the market and enjoy the added benefits of premiums. This shift, by those who finally see ETFs as productive assets, could potentially act as a new catalyst to sustain the current trend.
Meanwhile, apart from the ETF news, the sharp drop in crude oil prices has created additional headwinds. Brent crude fell 7% today, rekindling investor demand for riskier assets, including Ethereum, as they move away from traditional safe-haven assets.
On the daily chart, technical indicators suggest that the price of Ethereum may maintain its rally above $2100 in the short term.
Notably, the 20-day moving average is close to confirming a bullish crossover with the 50-day moving average. Meanwhile, Aroon Up remains at 35.71%, comfortably above Aroon Down at 7.14%. Ethereum’s RSI has also yet to enter the overbought zone.
This suggests that there is room for further upside before any potential wear-off or reversal occurs.
At the moment, $2,200 could act as an immediate resistance that traders will be watching closely for signs of a breakout. A move above this level can act as a firm confirmation of a positive change in market sentiment.
A rally above this mark also cancels a major bearish pattern. As previously reported by analysts at crypto.news, the price is forming a low flag pattern for several months.
Bearish flag patterns are considered some of the most valuable patterns in technical analysis. If ETH falls to $1800, it will confirm the pattern.
