The post Ethereum price rallies toward key resistance but is ETH’s strength sustainable? appeared on BitcoinEthereumNews.com.

Ether (ETH) is trading higher on Dec. 1, despite its inability to breach the $2,100 resistance. This level has prompted several rejections in the past three weeks, which is especially concerning given Ether’s 16.2% gains in November. Ether 12-hour price index, USD. Source: TradingView However, the current positive momentum is supported by several factors, including applications for spot ETFs and the expansion of Ethereum’s ecosystem, driven by layer-2 solutions. ETH benefits from ETF expectations and negative news related to competing blockchains A pivotal development occurred on Nov. 30, with the U.S. Securities and Exchange Commission (SEC) initiating the review process for Fidelity’s spot Ether ETF proposal, filed on Nov. 17. This move, along with similar applications from firms like BlackRock, awaits regulatory green light. If approved, these ETFs would bolster Ether’s status as a digital commodity, reducing the likelihood of it being treated as a security. Despite analysts predicting the SEC might delay its decision to early 2024, interim deadlines for applications by VanEck and ARK 21Shares on Dec. 25 and Dec. 26, respectively, have kept the market engaged. The mounting interest from large mutual funds in Ether products is creating a favorable impact on its price. The Ethereum network’s growth, especially in transaction activity and layer-2 development, is noteworthy. The Ethereum layer-2 ecosystem has become increasingly important as the average transaction fee held above $4 for the last couple of months. These layer-2 solutions offer more cost-effective and flexible options than the base layer. This growth is reflected in Ethereum’s total value locked (TVL), which recently hit a two-month high of 13 million ETH, spurred by a 13% weekly gain in Spark and a 60% increase in Blast user deposits. Ethereum network top DApps by TVL. Source: DefiLlama In contrast, Tron, another leading blockchain in TVL terms, witnessed a…

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Filed under: News - @ December 2, 2023 3:24 pm