Ethereum Price Soars 6% After SAB 121 Abolishment – Bulls Target $4,000 Mark

Highlights:

• Ethereum price rallies 6% to $3,404 as trading volume spikes.
• This recent rally follows after SEC’s (SAB) 121 was revoked.
• ETH price is poised for more upside if the $3,504 barrier is weakened. 

The Ethereum price has spiked 6% to $3,404 at press time. This noticeable price movement is accompanied by a growing trading volume of 61% to $36.17 billion, indicating heightened investor interest. 

Meanwhile, the Ethereum price may be on the verge of a significant breakout after the pivotal decision by the US Securities and Exchange Commission (SEC) to cancel a crypto accounting rule that prevented financial firms from offering cryptocurrency services. The SEC’s Staff Accounting Bulletin (SAB) 121 was introduced in March of 2022, and it required firms holding cryptocurrencies to record them as liabilities on their balance sheets. However, on Jan. 23, the SEC revoked this rule.

Bye, bye SAB 121! It's not been fun: https://t.co/cIwUc0isUE | Staff Accounting Bulletin No. 122

— Hester Peirce (@HesterPeirce) January 23, 2025

Elsewhere, Donald Trump’s family-backed crypto investment platform, World Liberty Financial (WLFI), has acquired $10M worth of ETH, which may fuel further upside in the ETH market. 

World Liberty Financial (@worldlibertyfi) further purchased 3,079 $ETH ($10M) and 10.61M $TRX ($2.65M) ~4 hours ago!

In the past 4 days, the fund has invested $181M across 6 tokens: $ETH, $WBTC, $TRX, $AAVE, $LINK, and $ENA.

With the latest events—SEC officially rescinds SAB… https://t.co/tYc79GbJ8G pic.twitter.com/GsSEFlDgQP

— Spot On Chain (@spotonchain) January 24, 2025

ETH Statistical Data

Based on CoinmarketCap data:

• ETH price now – $3,404
• Trading volume (24h) – $36.17 billion
• Market cap – $410 billion
• Total supply – 120.5 million
• Circulating supply – 120.5 million
• ETH ranking – #2

ETH Could Rally Above $4,000 If the $3,504 Resistance is Broken

The Ethereum price shows signs of recovery as the (SAB) 121 is revoked, gaining 6% to $3,404 at press time. Notably, the northbound RSI indicator reflects renewal in interest as the bulls aim for further upside. As the bulls show momentum, they may push the Ethereum prices toward the first resistance at $3,504, coinciding with the 50-day MA. Breaching this level could unlock further gains, with the next resistance at $3,725 and a more ambitious target at $4,018. 

Conversely, if early profiteering commences, the ETH price could fall through. In such a case, ETH could drop to $3,224, followed by a firmer safety net at $2,986. Should broader market sentiment deteriorate, ETH could retreat to the critical support at $2,986. 

Ethereum Price Poised for More Upside

The Ethereum bulls are showing resilient strength with the potential to retest the $4,000 mark in the short term, fueled by growing market optimism. Its position above the key support level at $2,986 supports the recent bullish momentum, with $3,504 as a critical pivot.

If ETH maintains its upward trajectory and overcomes resistance at $3,504, the path toward $3,725 could be more straightforward. Breaking above $3,725 would likely invite fresh buying interest, potentially driving prices beyond $4,000. This will also suggest fresh momentum, with already sidelined traders joining the trend without fearing price correction. 

A zoomed outlook at the Moving Average Convergence Divergence (MACD) indicator upholds the bullish picture with a buy signal. This call to traders to consider buying ETH manifested with the MACD line in blue, crossing above the red signal line. As the momentum indicator gradually ascends above the mean line (0.00) into the positive region, the path with the least resistance stays on the upside.

Moreover, the on-chain metrics data shows a spike in open interest by 8% to $33.43 billion, while the volume soared 84% to $54.05 billion. This indicates a renewed interest in Ethereum, suggesting a more upward trend in the ETH market.