Ethereum’s price rose to a weekly high of $2,144 on Friday, following a strong debut for investment manager BlackRock’s Equity Ethereum ETF.
summary
- Ethereum price broke through the $2,100 resistance on March 13th.
- BlackRock’s staking ETF “ETHB” recorded a trading volume of $15.5 million on its launch day.
- On the daily chart, a bullish SMA crossover is nearing confirmation.
According to data from crypto.news, Ethereum ($ETH) Prices surged nearly 6% to $2,144 mid-morning Asian time on Friday, before stabilizing at around $2,100 at press time. At this valuation, the second-largest cryptocurrency by market capitalization is 11% above its weekly low and up more than 18% from its February lows.
The rally gained momentum after BlackRock recorded a very strong debut for its iShares Stake Ethereum ETF (ETHB) on the Nasdaq market. The first Ethereum ETF to include staking from the world’s largest asset management company recorded approximately $15.5 million in trading volume on its first day.
For context, the iShares Staked Ethereum Trust (ETHB) operates by holding spot Ethereum and dynamically staking 70% to 95% of its reserves directly onto the Ethereum network. This structure allows investors to receive 82% of their staking rewards through monthly distributions. This is very different from existing Ethereum ETFs, where investors forgo wagering rewards, making the older product much less attractive.
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As a result, investors are likely to start rotating funds from other funds. $ETH Incorporate ETFs including BlackRock’s own ETHA that do not offer staking into the new ETHB.
Investors who were previously on the sidelines due to lack of yield can now enter the market while enjoying the added benefit of staking rewards. This change, driven by those who finally see ETFs as productive assets, could perhaps act as another catalyst to sustain the current upward trend.
Meanwhile, in addition to the ETF news, the sharp drop in oil prices provided further tailwinds. Brent crude oil fell 7% today, fueling renewed investor demand as risk assets, including Ethereum, move away from traditional safe havens.
On the daily chart, technical indicators seem to suggest that Ethereum price can sustain gains above $2,100 in the short term.
In particular, the 20-day moving average appears to be nearing confirmation of a bullish crossover with the 50-day moving average. On the other hand, the Aroon growth rate remained at 35.71%, comfortably outpacing the Aroon decline rate of 7.14%. Ethereum’s RSI is also not in overbought territory yet.
Ethereum price nears confirmation of bullish MA crossover on daily chart — March 13 | Source: crypto.news
This suggests that there is still room for the uptrend to continue before a potential depletion or reversal occurs.
For now, $2,200 is likely to be a near-term resistance level, and traders will be watching closely for signs of a breakout. A move above that level can serve as a definitive confirmation of a positive change in market sentiment.
A rally above this mark would also invalidate the major bearish pattern. As previously reported by crypto.news analysts, the price has been forming a bearish flag pattern for several months.
Bearish flag patterns are considered some of the most bearish formations in technical analysis. if $ETH A decline towards $1,800 will confirm that pattern.
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