Ethereum (ETH) Bulls Charge: RSI Signals Potential Rally to $3K Amid Technical Strength

• Ethereum (ETH) is beginning to build bullish momentum, with a potential surge to $3,000 looking imminent in the coming days.
• On top of showing technical strength, network upgrades and the potential approval of an Ethereum spot ETF will boost prices.

Ethereum (ETH) is beginning to show strength, with bulls looking to take charge of the digital asset. With the world’s largest altcoin showing stability above the $2,800 support, technical setups, network upgrades, and the approval of an Ethereum spot ETF are colluding to deliver a remarkable bullish rally.

At the time of writing, ETH is trading at $2,900 after a 4% rally in the past 7 days. This extends its weekly gains by 16%. This rally further extends its market cap, now over $348 billion, making it the second-largest cryptocurrency after Bitcoin (BTC).

Ethereum bulls are now fixated on the $3,000 resistance level, which, if broken, could usher in a new bull wave. Notably, the altcoin would be one of the best-performing coins at this level. With an all-time high of $4878, ETH would be around 37% below its all-time high.

Several key updates could go a long way toward boosting Ethereum prices. One of the key events is the upcoming spot ETF approval. BlackRock, a major asset manager, expects SEC approval for Ethereum ETF following its success with Bitcoin ETFs. With a nearly perfect track record of 576-1 for ETF approvals, BlackRock’s application for a spot Ethereum ETF signals its confidence in the digital asset market’s potential. Experts foresee the regulator approving the ETF in May.

Furthermore, the network has been attracting record investment. Data from the on-chain analytics platform Nansen reveals that Ethereum validators have locked in a staggering 30,659,864 ETH on the Beacon Chain as of February 14.

Another key event is the network upgrade. Following a successful series of testnets in the past months, the Dencun upgrade is expected to happen on the Ethereum mainnet on March 13. The Dencun upgrade will enhance Ethereum’s scalability through five EIPs, with the most important being EIP-4844, also called proto-dank sharding.

At the time of writing, the Ethereum Fear and Greed Index is 77, showing extreme greed. This coincides with a recent revelation by crypto analyst Ali Martinez, who spoke about the record ETH withdrawals. The analyst noted that in January, nearly 510,000 ETH have been withdrawn from known crypto exchange wallets, totaling a value of approximately $1.22 billion.

In the past three weeks, nearly 510,000 $ETH have been withdrawn from known #crypto exchange wallets, totaling a value of approximately $1.22 billion!

This significant outflow indicates a strong #Ethereum holder sentiment and potentially less selling pressure in the market. pic.twitter.com/6QOFSed1QN

— Ali (@ali_charts) February 4, 2024

While the potential for an upside swing is high, the $3,000 resistance could pose a threat to the cryptocurrency. However, investors are confident that the altcoin enjoys strong support at the $2,800 level. Further down, the altcoin could see its $2,600 and $2,400 support tested.