The second-largest cryptocurrency by market capitalization, Ethereum (ETH), has climbed back above the $1,600 level as the decentralized finance (DeFi) asset saw a substantial flow of capital into its market capitalization in the last 24 hours.
Ethereum is currently trading at $1,681, up 6.5% on the day, climbing to a five-month high after momentarily reaching above $1,700 as per data retrieved by Finbold on February 16.
Notably, $1,700 is now seen as the next significant resistance level for Ethereum to reach and gain support above. As things stand, Ethereum has a market capitalization of $205.77 billion, adding over $13 billion to its market worth in the last 24 hours, climbing from $192 billion.
Given that the Shanghai upgrade is scheduled to go live in March, and it will permit the phased release of staked ETH, investors will be hoping Ethereum will reclaim $2,000 before the upgrade.
Notably, before Ethereum’s Merge upgrade, the digital asset saw an enormous influx of capital that appeared to be a ‘buy the rumour, sell the news’ event. Since the Shangai upgrade will provide investors with more flexible alternatives for staking, such as liquid staking, it is looked upon by many analysts in the space as having a positive impact on the price of Ethereum.
Institutions buy up ETH
The supply and demand dynamics of Ethereum, as well as the narratives around staking, are not the only factors pushing prices upward. For the last week, according to on-chain detective ‘Lookonchain,’ institutions have also been flocking into the asset.
On February 10, it was discovered that a number of funds and institutions had invested over $1.6 billion in the cryptocurrency market. Both Bitcoin and Ethereum have hit new highs for the year 2023 today, which is a positive sign for both cryptocurrencies.
Meanwhile, The current circulating supply of ETH is 120.49 million. It has decreased by 24,038 ETH, or around about $40 million, since the Merge, according to UltraSound.Money tracker.
To summarize, the most probable scenario for the ETH price projection is an upward push beyond $1,700. In the event that this is accomplished, it might result in a push towards $2,000. On the other side, if the price of ETH falls below $1,450, it has the potential to drop all the way down to $1,300.
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