Ether surges 20% this week, eyes the $4,000 psychological level
The cryptocurrency market is set to close this week on a positive note, with Bitcoin, Ether, and other major cryptocurrencies in the green.
Bitcoin reached a new all-time high of $123k earlier this week, while Ether has topped the $3,600 mark for the first time since January.
Leading altcoins like Dogecoin, XRP, ADA, and Solana are also rallying higher. Thanks to the ongoing rally, the total cryptocurrency market cap hit the $4 trillion mark for the first time in history a few hours ago.
Institutional push continues to drive ETH higher
The primary driver behind Ether’s rally this month is the growing institutional demand for Ethereum products.
On Thursday, the world’s leading asset manager, BlackRock, applied to the Securities and Exchange Commission (SEC) to allow staking for its spot Ether exchange-traded fund (ETF).
The stock exchange Nasdaq, filed the proposed rule change.
If approved, BlackRock can stake part or all of the ETH underlying its spot ETH ETF (ETHA) through any staking services providers.
Other leading asset managers, including Fidelity, Franklin Templeton, Grayscale, and 21Shares, have already applied for the same permit with the SEC.
In addition to that, spot Ethereum ETFs are on track for a record inflow month since they were launched in July last year. Since July 1st, Ethereum ETFs have pulled in over $2.27 billion in ETH.
As usual, BlackRock’s ETHA led the way and now manages over $7 billion in assets under management (AUM), nearly half of the total Ethereum ETF landscape.
ETH targets $4k as rally continues
The ETH/USD 4-hour chart is bullish and efficient, indicating that Ether is preparing for another leg up. The technical indicators are bullish as buyers have been in control of the market over the last few days.
At press time, ETH is trading at $3,626 and could rally towards the daily resistance of $3,730 if bullish momentum persists. If the coin closes above the daily resistance at $3,730, it could extend the rally toward its next key psychological level at $4,000.
The major technical indicators, including the RSI and MACD, support an extended rally. The MACD lines have crossed 160, suggesting a strong bullish bias.
The RSI of 82 also shows that ETH is currently in the overbought region. The rising green histogram bars above its neutral zero line are further confirmations that it supports the bullish sentiment.
However, failure to close above the daily support could see ETH face a pullback. The bulls could suffer from exhaustion, resulting in Ether declining to find support around its key level at $3,000.
Unless there is a massive sell-off in the broader cryptocurrency market, the 4-hour Valid Trading Range (VTR) at $2,900 should provide strong support for Ether.
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