Ethereum (ETH) experienced a substantial surge, climbing by 10% to reach $2,605. This price level has not been witnessed since May 2022, marking a significant milestone for the second-largest cryptocurrency by market capitalization. The surge is particularly noteworthy as it reflects a 10% increase in the daily chart and an impressive 17.84% rise in the weekly chart.
This surge in Ethereum’s price is attributed to the heightened optimism stemming from the recent approval of the Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC) on January 10th. In an official statement, the SEC clarified that while they approved the listing and trading of certain spot Bitcoin Exchange Traded Product (ETP) shares, it should not be construed as an endorsement of Bitcoin. Investors were cautioned about the various risks associated with cryptocurrencies and related products.
Despite this cautionary stance, analysts are now speculating that the approval of the Bitcoin spot ETF could pave the way for a similar product focused on ETH. Crypto experts, including the well-known figure Crypto Rover, have expressed their anticipation for an Ethereum Spot ETF, with Rover stating, “The $ETH Spot ETF is next.” He further asserted that 2024 is poised to be the year of ETH, with the market attention shifting towards this altcoin after the Bitcoin ETF approval.
Lark Davis, another prominent figure in the crypto space, echoed the sentiment, noting Ethereum’s positive momentum. “Ethereum is pumping! Seems the market is ready to rotate to the next trade,” he posted on X. The highest spot price in almost two years, coupled with a bullish Moving Average Convergence Divergence (MACD) cross on the daily chart, adds weight to the bullish sentiment surrounding Ethereum.
Adding to the optimism, cycle forecaster and chartist BACH shared insights on Ethereum’s current status, highlighting its bullish outlook. BACH emphasized Ethereum’s relative strength and suggested a potential breakout from a daily bull flag, setting a target range of $3500 to $4000.
Influential Whales Focus On Ethereum
Amid the prevailing uncertainty in the broader crypto market, Ethereum garnered attention from influential whales. Lookonchain, a crypto analytics platform, reported a substantial whale transaction involving a withdrawal of 9,705 ETH (equivalent to $22.9 million) from Binance.
The whale subsequently deposited these funds into Compound and borrowed 12 million Tether (USDT) to further accumulate ETH. Notably, two out of the three ETH transactions resulted in profits, accumulating around $5 million.
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