The price of the second largest cryptocurrency by capitalization increased by almost 8% per day — from $3,400 to $3,650 — amid growing optimism among traders and anticipation of the launch of exchange-traded funds.
The 15-minute ETH/USDT chart of the Binance exchange. Data: TradingView.In terms of daily dynamics, the asset has outperformed bitcoin and other closest competitors. ETH is trading 24% below its historical high.
According to an analysis by Lunar Crush, Ethereum's momentum is driven by several factors, including "super-strong" user engagement.
🌘Ethereum is showing ultra-strong activity today, eclipsing many other assets...
14 hours ago
Average social and market activity gave $ETH a LunarCrush AltRank™ of 64.
11 hours ago
Social activity accelerates as price also rises resulting in a much stronger AltRank™ of 10.… pic.twitter.com/9ppFegfuv4
"Social activity continues to accelerate, which is facilitated by both strong price actions and market volumes," the experts noted.
According to Derbit, the open interest in ETH options is about $600 million with an exercise price of $4,000. At the levels of $3,700 and $5,000, the figure is $375 million.
Open interest in Ethereum options. Data: Derbit.The author of books about cryptocurrency and developer Vijay Boyapati stressed that the probability of approval of spot Ethereum ETFs is the driving force for the asset. However, the momentum may end if the instruments are rejected, he believes.
All the hot money that flowed into ETH because of ETF hopium is going to go back into #Bitcoin once the Ethereum ETFs are all rejected.
— Vijay Boyapati 🦢 (@real_vijay) April 8, 2024"All the hot money that flowed into ETH due to the hype around exchange-traded funds will return back to bitcoins," the expert warned.
The analytical company Santiment stated that "due to the growth of Ethereum at the beginning of the week, ERC-20 assets are significantly ahead of the market on average." Over the past week, the sector has grown by 8.1%.
📈 Powered by #Ethereum's rise to start the week, #ERC20 assets have been well ahead of the markets on average. The sector has grown by +8.1% in the past week. Keep an eye on the continued surge of $TON (+21%), $LDO (+12%), and $ENA (+12%)
Watchlist link: https://t.co/uex3LH2qHC pic.twitter.com/9wAvW1TLYe
Earlier, JPMorgan expert Nikolaos Panigirtsoglu admitted that the U.S. Securities and Exchange Commission will eventually approve spot ETFs based on the second largest cryptocurrency by capitalization.
In March, Bloomberg stock analyst Eric Balchunas halved the probability of launching instruments in May — from 70% to 35%. In the same month, the specialists of the GSR market maker estimated the chances at 20%.
Recall that the net profit of the Ethereum network for the first quarter reached $369 million — the figure tripled compared to the previous reporting period. During this period, more than $1.1 billion was spent on commissions.