Top 4 reasons Ethereum price is on the verge of a 60% surge

Ethereum’s price has rebounded over the past few days as market participants cheered this week’s Fusaka upgrade, which boosted its network stats.

Ethereum (ETH) rose to a high of $3,247, its highest level since Nov. 14, and was about 20% above its November low. Here are the top reasons why it may be on the verge of a 60% surge.

Ethereum price technicals suggest a rebound is possible 

The daily timeframe chart shows that ETH’s price has strong bullish technicals. It has formed a falling wedge pattern, which connects the highest and lowest swings since Sep. 26. 

A closer look shows that it has moved above the upper side of the wedge and is now attempting to flip the Supertrend indicator green.

The two lines of the Percentage Price Oscillator have made a bullish crossover and are pointing upwards.

Therefore, the most likely scenario is where the token continues rising, with the next key resistance level to watch being the year-to-date high of $4,960, which is ~60% above the current level.

ETH ETF inflows, falling exchange reserves

There are other top reasons why the Ethereum price rally has more room to run in the coming weeks.

First, third-party data shows that American investors are still buying Ethereum ETFs despite the ongoing performance. SoSoValue data shows that the ETFs added over $312 million in assets last week and $9.6 million this week. While this week’s inflows are not much, it is worth noting all spot Bitcoin (BTC) ETFs have shed $142 million.

Second, another sign of resilient demand is that investors continue to remove Ethereum from exchanges. This supply is going to ETFs staking, and the ongoing accumulation by the likes of BitMine, a company whose chairman is Tom Lee. It has bought Ethereum tokens worth over $11 billion in the past few months.

Data compiled by CoinGlass shows that the percentage of Ethereum supply on exchanges has dropped to 8.84%, well below Bitcoin’s 14.8%.

Finally, Ethereum’s developers have continued to improve the network, including through the recent Fusaka upgrade. The goal is to make it a much better network than others. This move will drive more demand from companies building solutions in areas like decentralized finance and real-world asset tokenization, industries that it currently leads by far.