Ethereum Rally 30%, ETH Price on the Road to $3.5k

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Ethereum prices are off to a flying start in February 2022, reading from price data.

The candlestick arrangement in the daily chart shows that ETH prices are firm above the dynamic support line, former resistance, as the February 4 bull bar set the trend for the short to medium term.

Although there is a slight pullback, aggressive traders might take the chance to double down, loading the dips while targeting $3.5k and $3.8k in the short term.

Ethereum’ Roadmap Exciting

Fundamentally, Ethereum prices are solid.

The project’s developers continue to look for ways to resolve the high Gas fees by prioritizing layer-2 development.

Thus far, layer-2 solutions based on Rollups like Arbitrum, Metis, and Optimism have a total value locked of over $6.2 billion.

They cumulatively help scale Ethereum by rerouting transactions processing off-chain while ensuring they are secure by confirming them on the mainnet.

In the months to come, Ethereum will also shift to a Proof-of-Stake network that is more energy-efficient with on-chain scaling options.

KPMG Adds BTC and Ethereum

For what Ethereum brings to the table, the network’s total market cap soared to flip MasterCard, effectively becoming the 26th most valuable asset in the world.

At the same time, traditional companies continue to add digital assets, mainly Bitcoin and Ethereum, to their public balance sheet.

Following the likes of MicroStrategy, a NASDAQ-listed business intelligence firm and the largest holder of BTC, KPMG Canada has added BTC and ETH.

The audit firm, considered one of the top-4, adding ETH and BTC, analysts say, is massive than when Tesla announced their $1 billion purchase of Bitcoin.

Ethereum Price Analysis

ethereum price analysis

Currently, the path of least resistance for ETH prices remains northwards. ETHUSDT prices are trending above the $3k level and the middle BB, signaling general resilience against sellers. Even though sellers have the upper hand from a top-down perspective, buyers are firmly in control following the bounce from January 2022 lows.

Based on candlestick arrangement in the daily chart, every low above the middle BB at around $2.7k could be loading opportunities for traders targeting $3.5k and later $3.8k as ETH prices resume the H2 2021 bull run.

On the flip side, sharp losses below this mark may see ETH tumble to $2.3k, continuing the January 2022 bear trend.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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