Ever since Bitcoin soared above $60,000, the markets have become hopeful of incoming bullish action. The optimism surrounding the popular tokens has swelled, due to which the Ethereum price has reclaimed levels above $3,300. These bullish signals have now revived the possibility of marking $3,500 as the technicals flash clear buying signals.
The spot ETH ETF is on the cards. The ETF launch is expected to manifest a similar or extended price behaviour as it displayed soon after the approval. In the previous composition, the possibility of the ETF impact on the ETH price, which seemed to have been underestimated, was elaborated. As per the data from Santiment, the ETH 2.0 Beacon Deposit Contract, which is used for deposits, now holds 47.36 million ETH.
The levels marking an ATH suggest the impact may be caused by a chuck of ETH which is in circulation as now more than 33.9% of the entire supply has been stacked. On the other hand, the deposit contract excluding the Beacon depositing contract supply has dropped by over 5.3% in the past 2 years. This indicates more ETH locked into the ETH 2.0 depositing contract as the wallets holding 10,000 or less have also reduced their levels by over 17%. Now that the Beacon wallets hold a large part of the Ethereum in circulation, a slight rise in demand may elevate the ETH price levels towards the next prime target of $3500.
The current trade set illustrates the price action that occurred soon after the approval of the spot ETF that printed a god bullish candle, breaking out of a descending parallel candle. After the rejection from the levels around $3,900, the price again began to trade within a descending parallel channel. Now the ETF is about to go live in a short while and hence another bullish candle appears to be on the horizon.
The price is trying hard to clear the pivotal resistance between $3282 and $3323. Once done, the next pitstop for the Ethereum (ETH) price rally could be $3,500 or even $3700 in the event of an extreme bullish action.
