Bulls Charge As Ethereum Barrels Past $2,600 – Is An ETF The Secret Weapon?
January 11 2024 - 4:54AM
NEWSBTC
Ethereum (ETH) continued its upward trajectory Wednesday, clocking
a 10% gain in 24 hours to breach past the vaunted $2,600 mark.
Market watchers attribute this surge to a confluence of factors,
primarily fueled by anticipation of a forthcoming Ethereum
exchange-traded fund (ETF) in the wake of the expected approval for
a Bitcoin ETF in the US. In a historic move that cryptocurrency
aficionados hope will bring more individual and institutional
investors into the market, the US Securities and Exchange
Commission has approved the first spot bitcoin exchange traded
funds on Thursday. Related Reading: Crypto Chaos Meets BONK Bliss:
15% Rally Bucks The Trend Ethereum ETF Buzz Sparks Strategic Moves
“There’s a noticeable trend towards frontrunning the ether ETF,”
noted Alex Onufriychuk, CEO of Kaminari, in a Telegram message.
This sentiment aligns with the prevailing belief that Ethereum, the
second-largest cryptocurrency by market cap, would be the next
candidate for an ETF after Bitcoin. Source: Santiment Adding fuel
to the fire, a prominent investor, dubbed a “whale” in the crypto
universe, made a strategic move by transferring 9,705 ETH (nearly
$23 million) from Binance to Compound. This was followed by a 12
million Tether (USDT) loan, seemingly used to further accumulate
ETH. The whale subsequently executed three profitable ETH
transactions, netting roughly $5 million. This decisive action
signaled two things: confidence in Ethereum’s future and the
potential for profit-taking, which could introduce short-term
volatility. Despite the risk, the whale’s activity bolstered
positive market sentiment. Ethereum currently trading at $2,607.8
on the daily chart: TradingView.com Further validating this
optimism, Ethereum’s network metrics experienced a surge. Both
network growth and token velocity saw increases, indicating
heightened interest from new addresses and more token movement.
These on-chain metrics paint a promising picture for ETH’s future.
ETH Futures Surge Amid ETF Optimism Also adding to the bullish
case, Open Interest for ETH futures contracts jumped 15% in recent
days, reaching $4.57 billion at the time of writing. This signifies
more traders entering the market and anticipating significant price
gains following a potential ETF approval. Ethereum vs. Bitcoin Open
Interest | Source: Velo Data According to reports, crypto traders
expect Ethereum’s price to rise after a favorable ETF judgment,
even though Bitcoin is getting more attention in the media. If this
situation plays out, the price of ETH could soon go beyond $2,600.
Related Reading: Is Stacks The New Safe Haven? STX Soars 16% In
Turbulent Market However, it’s crucial to remember that the
cryptocurrency market remains volatile, and unforeseen factors
could still impact prices. The timeline for an Ethereum ETF
approval is uncertain, and regulatory hurdles could create delays.
Additionally, broader market conditions and news on Ethereum
development could also play a role. Investors should carefully
consider their risk tolerance and conduct thorough research before
making any investment decisions, particularly in the dynamic and
unpredictable world of cryptocurrencies. Featured image from Medium
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