Ethereum (ETH:USD) is holding a key level that goes back to 2024 highs, and it will define the path ahead.
ETHUSD – Weekly Chart
The price of ETH is facing an important test of its ability to hold the rally. The $4,261 level was a high in 2024 on two occasions.
Ethereum’s test of the recent highs comes at an important time for the crypto market, as Bitcoin has seen some recent selling. Ethereum has been seeing growth in its network with transactions rising to a record high, as levels of staked ether (ETH) also hit a record high.
Staking your tokens means that you can earn a yield, and it also supports the developers who are seeking to keep the project new and relevant.
A recent surge in Ethereum’s volume and price was driven by a statement from the U.S. Securities and Exchange Commission on staking. The regulator said that certain staking activities and “staking receipt tokens” do not constitute securities under the 1933 Securities Act. That removes a big headache and opens the door to more adoption from institutions.
More than 36 million Ethereum, or almost 30% of the supply, is now locked in staking contracts, according to Dune Analytics. That can be seen as a signal that owners are willing to sacrifice liquidity for a higher yield as prices make a push toward $4,000.
Another boost for ETH has been the growing desire for companies to create a crypto treasury. MicroStrategy and other companies have seen their stock prices soar due to their holdings in crypto.
Ethereum’s recent price gains are now testing an important level of resistance, and it should be an important turning point when BTC is also testing a key high.
Ethereum’s co-founder Vitalik Buterin said of the recent developments:
“ETH just being an asset that companies can have as part of their treasury is good and valuable, giving people more options is good,” Buterin said.
“If you woke me up three years from now and told me that treasuries led to the downfall of ETH. My guess would be that somehow they turned it into an overleveraged game,” he said.
