On February 20, Ethereum’s price surpassed the $3,000 milestone, marking a notable ascent that outpaced Bitcoin‘s 22% growth. Observations on the trends in ETH 2.0 staking deposits this week suggest a potential widening gap between the two leading cryptocurrencies.
The initial days of the 2024 market rally saw Bitcoin’s price outperforming Ethereum, especially fueled by the media frenzy surrounding the approval of Bitcoin ETFs. However, a reversal in this trend has occurred since the beginning of February, as investors make long-term bets on Ethereum.
Bulls in the market may capitalize on the rising ETH 2.0 staking deposits and a declining market supply to potentially drive a rally above $4,000 in the coming weeks.
Despite Bitcoin dominating recent headlines with unprecedented institutional inflows following the SEC approval of Bitcoin ETFs on January 11, Ethereum’s price performance has managed to outshine Bitcoin. As of February 19, the newly-launched ETFs had attracted over 654,000 BTC, valued at more than $36 billion. Yet, ETH’s price has exhibited impressive growth, reaching $3,000 on February 20.
In February, Bitcoin prices increased by 24.2%, rising from $41,864 to a monthly peak of $52,985. In contrast, Ethereum’s price demonstrated a more substantial increase of 33.7%, reaching the $3,000 milestone on February 20, a level not seen since April 26, 2022.
The seamless execution of the Dencun upgrade has earned Ethereum praise in the media. On-chain data indicates that investors, anticipating gains from an imminent ETH ETF approval, have played a significant role in ETH’s robust price action. Over the past week, investors deposited 504,799 ETH into ETH 2.0 staking contracts, totaling over $1.5 billion.
This surge in staking deposits, reaching a total of 30,064,242 ETH on the Proof of Stake network, is seen as a positive trend for Ethereum’s network security and stability during a bull market. The increase in staking deposits reflects investor confidence and commitment to the network’s security, potentially leading to a further extension of ETH’s lead over BTC.
Looking ahead, data-driven insights suggest that Ethereum’s price is poised for further upswing towards $3,500. However, historical accumulation trends indicate potential resistance at the $3,200 territory. If Ethereum can decisively break above this level, it may pave the way for a larger upswing towards the $3,500 mark. Conversely, a drop below $2,500 could lead to challenges, but a significant buy-wall at $2,548 might come into play in such a scenario.
