The recent surge in Ethereum, which witnessed an impressive 8% increase, has set a new milestone as its largest surge in over a month, sparking renewed excitement within the cryptocurrency ecosystem.
Ethereum’s surge has notably outpaced major crypto assets like Bitcoin, signaling a potential shift in market dynamics.
According to reports from BeinCrypto, the surge in Ethereum’s value is largely attributed to speculation surrounding the possibility of the introduction of US exchange-traded funds for Ethereum.
This speculation has generated significant discussion and anticipation within the crypto community, driving further interest in the digital asset.
Ethereum’s current price stands at $3,680, reflecting a remarkable 62% year-to-date gain, closely trailing Bitcoin’s 68% rise. Backers of spot Ethereum ETFs have reportedly engaged with the United States Securities and Exchange Commission, buoyed by the approval of spot Bitcoin ETFs in January, which attracted over $59 billion in assets to the ETF.
There is speculation that prominent financial institutions such as Blackrock and Fidelity Investments may back Ethereum ETFs. However, uncertainty remains regarding the final approval from the SEC.
In addition to the surge in value, significant acquisitions of Ethereum by crypto whales have been reported. Before the surge, crypto whales acquired over $35 million in ETH, pushing the price above $3,400 on Monday.
Alameda Research, affiliated with the defunct FTX, has been particularly active in the Ethereum market, as evidenced by a notable deposit of 4,000 ETH ($14.75 million) to Coinbase, the largest since a major rally in February.
Although Alameda Research still holds substantial Ethereum assets, with $64 million in Wrapped ETH (WETH) and ETH, experts caution that the large deposit poses a complex situation for Ethereum. The timing of the deposit, amid impending regulatory approvals and market movements, is expected to significantly influence Ethereum’s trajectory in the coming days.
Ethereum remains the largest altcoin by price and market capitalization, with a current price of $3,680 and a market capitalization of $442.82 billion. Ethereum accounts for over 17% of the total $2.49 trillion market capitalization of all cryptocurrency assets. As of now, 1 Ether is valued at approximately N4.480 million.
