Ether Surpasses $2,400 Mark Amid Anticipation for Ethereum ETF Approval
Summary:
Ether's price outperformed the $2,400 resistance mark for the first time since May 2022, propelled by speculation of a potential Ethereum exchange-traded fund (ETF) following the approval of a spot Bitcoin ETF. Market participants are confident of imminent approval, especially after the Cboe's recent securities listings approval from several asset managers. Meanwhile, Layer 2 network tokens witnessed notable gains, offering quicker and less costly transactions on Ethereum's base network.
For the first time since May 2022, the price of Ether (ETH) surpassed the $2,400 resistance marker, in response to growing anticipation for a potential Ethereum exchange-traded fund (ETF) following the approval of a spot Bitcoin ETF. On January 10, the opening price of ETH escalated from $2,343, surging by more than 7.8% in a single day and increasing by 85% over the past year to achieve a year-to-date high of $2,444. Among the top ten cryptocurrencies by market cap, ETH was the only non-stablecoin to exhibit a bullish trend, following an erroneous tweet by the SEC regarding spot BTC ETF approvals causing notable fluctuations in Bitcoin's (BTC) price.
The last time Ether prices climbed above $2,400 was on May 3, 2022, reaching a high of $2,529 before it fell below the $1,000 mark on July 18, 2022 due to the collapse of the Terra ecosystem. Layer 2 network tokens such as Mantle's MNT and Optimism's (OP) saw appreciable gains of up to 9% and 15% respectively. Despite being based on the Ethereum network, these independent blockchains enable quicker and more cost-effective transactions.
Cryptocurrency experts suggest that speculators are preparing for a spot Ethereum ETF approval, which would offer US investors an indirect exposure to ETH. Founder and CEO of MN Trading, Michaël van de Poppe said, "the present momentum is focused around Bitcoin and the ETF confirmation, with a prospective Spot ETF for Ethereum in the pipeline." Coinglass data reveals Ethereum short-position liquidations reached $31.7 million within the 24-hour period, and continues to rise as of this report.
The SEC's verdict on all spot Bitcoin ETF applications is expected to be announced on Jan. 10. Confidence in the certainty of approval is high, particularly after Cboe announced the approval of securities listings from multiple asset managers on this same day. This coverage is not intended as investment advice or recommendations. All investments and trading decisions have inherent risks and individuals should research thoroughly before making any decisions.
Published At
1/10/2024 10:29:02 PM
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