Will Ethereum (ETH) Price Hit $3,000 in February?

Ethereum’s remarkable 2024 rebound may soon tackle the psychologically vital $3,000 milestone if improving blockchain dynamics persist, according to optimistic analysts.

New Utilization Highs

Analyst Leon Waidmann notes ETH supply locked in DeFi protocols, staking contracts, DAOs, and assorted applications hitting all-time highs—now over 35% of total circulation. This surging utility signals booming demand expectations and long-term user commitment.

With Ethereum transitioning firmly beyond speculative trading into powering global Web3 infrastructure, Leon forecasts a “massive price increase” as this adoption growth continues to play out.

He explains that elevated activity translates into scarce liquid ETH floats that are actually available to transact or sell. This supply crunch amidst swelling user numbers could propel Ethereum’s next vertical move sooner rather than later.

Ongoing Scarcity Improvement

In a follow-up tweet, Leon doubles down on this scarcity narrative – declaring readily-tradeable ETH is decreasing at a faster pace than even Bitcoin now, with balances sharply dropping on exchanges.

With unmoved investor holdings simultaneously reaching historic highs, he expects new highs “sooner than most expect” considering these exponentially favorable shifts.

Key Upgrades Pending

Finally, analyst Crypto Rover reveals Ethereum’s roadmap contains further scalability boosts this March via EIP-4844 before spotlighting a much-awaited US spot ETF launch in May 2024 as well.

He believes these milestones could provide catalysts for maintaining bid momentum while the technical chart appears bullish. The daily Relative Strength Index currently sits at 75, indicating short-term overbought conditions but leaving room for this vertical move to potentially extend towards the $3K threshold if past precedents hold.

Ethereum has already surged by 17% in the last seven days. ETH is also up by 3% in the last 24 hours and is trading at $2,757 at press time.

Overall, Ethereum’s flipping into a legitimate Web3 backbone combined with critics’ scarcity concerns getting addressed paints a very constructive backdrop. If demand metrics and user growth persist, $3,000 in February looks inevitable.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.