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Ethereum experienced a significant price surge in February 2024, reaching a peak of $3,500. This represented a remarkable 56% gain for the month. Market trends indicate that Ethereum could continue its upward momentum in March, potentially reaching $4,000.
Ethereum Outperforms Competitors
In February, Ethereum outshone other major cryptocurrencies such as Bitcoin, Solana, and Cardano. On-chain analysis reveals key data trends that suggest Ethereum is poised for another bullish price performance in March.
Supply Trends and Price Growth
The successful execution of the Dencun upgrade testnet and increasing interest in ETH ETF filings were catalysts for Ethereum’s price surge in February. On-chain data indicates that investors are shifting towards longer-term investment strategies and passive income yield, rather than short-term profits.
Decrease in Exchange Reserves
Exchange reserves of Ethereum have decreased significantly, indicating a shift of $2.3 billion worth of ETH from trading wallets to long-term storage and staking contracts. This reduction in available supply could drive Ethereum’s price higher in the coming weeks.
New User Growth
In February, Ethereum welcomed 1.84 million new users to its network, signaling growing global adoption. This influx of new users, combined with the decrease in exchange supply, positions Ethereum for further price appreciation.
Resistance Levels and Price Prediction
While Ethereum faces resistance at the $3,550 level, breaking through this barrier could propel the price towards $4,000. Short-term support is seen at $3,000, with a potential sell-wall at $3,100.
Overall, Ethereum’s strong fundamentals and market trends suggest a bullish outlook for March 2024. Stay informed with the latest news and updates on Global Crypto News.
