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.
In terms of daily dynamics, the asset is ahead of Bitcoin and other closest competitors. ETH is trading 24% below its all-time high.
According to analysis from Lunar Crush, Ethereum's momentum is being 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— LunarCrush (@LunarCrush) April 8, 2024
According to Derbit, the open interest for ETH options is about $600 million with an exercise price of $4,000. At the $3,700 and $5,000 levels the figure is $375 million.
Open interest in Ethereum options. Data: Derbit.
Cryptocurrency author and developer Vijay Boyapati emphasized that the likelihood of approval of spot Ethereum ETFs is a driving force for the asset. However, the momentum could end if the instruments are rejected, he said.
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
Analytics firm Santiment said that “thanks to Ethereum's gains earlier in the week,” ERC-20 assets are “significantly outperforming the market on average.” The sector grew 8.1% over the past week.
📈 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
— Santiment (@santimentfeed) April 9, 2024
Earlier, JPMorgan expert Nikolaos Panigirtzoglou admitted that the US Securities and Exchange Commission would ultimately 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, specialists at market maker GSR estimated the chances at 20%.
Source: Cryptocurrency
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