The struggling Ethereum price has one key catalyst that may propel it to rocket above the psychological barrier of $2000 and beyond.

The struggling Ethereum (CRYPTO: ETH) price may have one key catalyst that could propel it to rocket above the psychological barrier of $2000 and beyond. This catalyst is that the Securities and Exchange Commission (SEC) might soon allow staking in the spot ETH ETFs, a move that may attract more inflows from Wall Street investors.

This article will discuss whether the ETH price will hit $2k if this approval happens tomorrow. But first, let’s look at the SEC's decision to approve several spot ETH ETFs in September last year. These funds have not been as successful as initially expected.

According to the latest data, these funds have only attracted $2.47 billion in assets, bringing the total assets to $6.2 billion. In contrast, Bitcoin (CRYPTO: BTC) ETFs have attracted over $38 billion in inflows, with BlackRock's (NYSE:BLK) IBIT having $58 billion in assets. Admittedly, these ETFs are 8 months older than the Ethereum ones. Still, this sluggish growth explains why the Ethereum price continues to underperform compared to Bitcoin.

One factor contributing to this is that Gary Gensler rejected Ethereum ETFs with staking features. This implies that ETF holders will only generate returns related to the price of the coin. In comparison, Ethereum investors earn an annual return of at least 3%, which is greater than that of many dividend-focused ETFs.

However, this could change soon under Paul Atkins. The SEC met with Grayscale recently and discussed the possibility of allowing this staking. Such a move would likely result in increased inflows, leading to a higher ETH price, potentially to $2,000 and above.

Indeed, data from CBOE shows that the spot Ethereum ETFs have experienced inflows over the last three days. CBOE has already applied for staking in Fidelity's ETH ETF. This move by Cboe could be a turning point for the market, as it may encourage other market participants to also apply for their own ETF products with staking features.

ETH Price Technical Analysis: Could Hit $2,000 And Above

The daily chart reveals that the Ethereum price rose from the year-to-date low of $1,376 to the current $1,822. This rebound was notable as the coin jumped above the upper line of the falling wedge chart pattern. A wedge often leads to more gains, especially when the two trendlines are about to converge.

ETH price has also jumped above the 25-day Exponential Moving Average, another positive signal. The Relative Strength Index has risen above the neutral point at 50, and is now heading up.

These technicals suggest that the value of ETH will continue to rise as buyers target the crucial level at $2,000. This rebound will be confirmed once it moves from the current consolidation phase. A clear breakout to $2,000 will bring the next ETH price target to $2,140, the lowest level in August last year.

However, a bearish ETH price forecast can be made. Indeed, a Polymarket poll shows that many traders are betting that it will drop to $1,000. Also, the Average Directional Index indicator has tilted downwards, signaling a potential downside.

Frequently Asked Questions (FAQs)

1. Will Ethereum price hit $2,000 if the SEC approves ETF staking tomorrow?

If the SEC approves including staking in the price of the ETH ETFs tomorrow, it is possible that the price of the coin could rise to $2,000 and above. This is because the inclusion of staking would make these ETFs more attractive to institutional investors, leading to increased demand for ETH and potentially pushing up the price.

2. How high will ETH price get this year?

The price of ETH could rise to $2,140 if it breaks out of the consolidation phase and reaches the next price target. However, this scenario hinges on the SEC's decision to allow staking in the ETH ETFs. If the SEC does not approve staking, the price of ETH could continue to fall and reach $1,000 by the end of the year, as predicted by traders on Polymarket.

3. Which bullish pattern has ETH coin price formed?

The technical analysis shows that the price of ETH has formed a falling wedge pattern, which is a bullish pattern that signals an upcoming increase in price. The two trendlines of the pattern are about to converge, which could lead to a strong breakout. Additionally, the price of ETH has moved above the 25-day Exponential Moving Average, another positive technical development.