Ether Price Surges Amid Bitcoin ETF Speculation and Rise in Whale Transactions
Summary:
Ether (ETH), Ethereum's primary token, has seen price appreciation, mirroring a larger bullish sentiment across the cryptocurrency market in anticipation of Bitcoin ETF approval in the U.S. The U.S. SEC recently acknowledged Grayscale Investments' proposal to convert its Ethereum trust into an ETF. An increase in Ethereum whale transactions and short liquidations also contributed to ETH's price surge.
Ether (ETH), the primary token of Ethereum, has seen an uptick today. This increase reflects the overall positive sentiment in the crypto market, with investors showing bullish tendencies in anticipation of an approval for a Bitcoin spot Exchange-Traded Fund (ETF) in the U.S. As of October 25, ETH's price levelled around the mark of $1,800, a key resistance point, after a near 9% surge within the week. The surge in Ether price enjoyed a boost from heightened daily trading volumes, signalling strong buying interest.
On October 24, Grayscale Investment's proposal to convert its Ethereum trust into an ETF got recognition from the U.S. Securities and Exchange Commission. Grayscale's move follows a direct court instruction to review its pending ETF applications. While the commission has yet to give a nod to a spot crypto ETF, it has greenlit similar investment forms tied to Bitcoin and Ethereum futures. Market observers are optimistic that a spot Bitcoin ETF will receive SEC's approval in the early part of 2024, with a nod for a spot Ethereum ETF likely to follow.
A spike in high-value transactions within the Ethereum ecosystem aligns with this ETF-related optimism. Specifically, the count of Ether transactions exceeding $100,000 ballooned 15% over a week, reaching its highest point since June, according to data from Santiment. Several other cryptos, including Bitcoin, Cardano, and DAI, saw similar whale transaction growth trends. Furthermore, significant Ether holdings withdrawal by whales from exchanges suggest their intent to hold onto the cryptocurrency rather than trading it for other assets.
The increase in ETH's price coincides with the liquidation of over $70 million in Ether futures contracts short positions. On the flip side, long positions worth about $41 million were liquidated in the same timeframe. As short sellers bought futures contracts at any available price to shut their positions, this buying pressure nudged the price over $1,850 on October 24.
All in all, Ethereum bulls have ample reasons to stay hopeful as traditional stock market brokers could potentially open up new investment channels.
This article is for informational purposes only. It doesn't serve as investment advice or recommendations. Investing and trading involve risks, and it is advisable for readers to undertake their own research before making a decision.
Published At
10/25/2023 4:04:51 PM
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