Ethereum (COIN: $ETH) broke through the $2,400 mark on Wednesday, January 10, 2024. Since then, it has been trending upward. As of Thursday, January 11, 2024, ETH has broken past the $2,500 barrier, trading at $2,643.88 per coin.
Ethereum Proves Naysayers Wrong
For a while, there was speculation that the ETH price would not rise about the $2,500 mark, which was its previous 52-week high. However, the pump is on, and the price keeps rising. The main metric used by naysayers was the ETH/BTC ratio.
According to the data, the ratio had been declining, leading to speculation that Ethereum’s performance was weakening. Some investors took it as a signal to leave ETH and enter BTC. However, the trend has reversed. Soon after the BTC ETF was approved, it can be assumed that some large BTC holders took profits and placed them in ETH.
Why ETH Is Rising?
The price of ETH has risen 11.19% in the past 24 hours and 18.43% in the past seven days. The main catalyst for the rise was the approval of a BTC spot ETF by the US SEC. It has resulted in a bullish crypto market since they made the announcement.
Many analysts now believe that with the BTC ETF having been approved, the path for an Ethereum ETF is much easier. As such, many are anticipating a similar pump resulting from such an approval.
Whales are behind much of the price rally; they have been on an Ethereum buying spree since the BTC ETF news came out. It has led to ETH trading volume rising by 49.73% in the past 24 hours to reach $29.73 billion.
Another reason why ETH may be rising is the planned EIP-4844 upgrade. The upgrade is designed to improve the speed and efficiency of transactions. In a recent research note, JP Morgan referred to the EIP-4844 upgrade when discussing why Ethereum could rise in 2024. The planned upgrade could allow Ethereum to handle up to 100,000 TPS.
All Bitcoin ETFs Approved
The US SEC has approved all Bitcoin spot ETFs in a sweeping move. It approved all 11 spot Bitcoin ETF applications made by major players, including Fidelity, Blackrock, Bitwise, Grayscale, and others. Its decision comes after months of intensive lobbying by major players in the financial sector. It marks a major milestone, allowing institutional investors to gain exposure to BTC. Despite the approval, the US SEC declared that it does not endorse Bitcoin.
What the Future Looks Like For ETH
Ethereum’s 50-day moving average sits around the $2,200 mark. It signals that many people are trying to jump into ETH, recognizing the apparent bullish trend. However, the BTC ETF approval means that Bitcoin will remain ahead of the pack, with ETH following closely.
However, if, for some reason, Ethereum were to break below the $2000 level, it would be the worst-case scenario. Currently, there is no reason to expect that will happen. Having broken through the $2,500 barrier, ETH will likely grow from strength to strength and it could soon hit the $3K mark.
It is worth noting that ETH is still below its all-time high price of $4,900, which it achieved in November 2021. Consequently, there is still room to grow.
Should You Buy ETH?
With Ethereum rising above $2,600, it might seem like you missed the boat. However, ETH is still working on upgrades that could send it to the stratosphere. Additionally, it is trading at a 45.92% discount on its ATH price of $4,891.70 that was set in November 2021. The recent approval of the Bitcoin spot ETF also signals that an Ethereum spot ETF could launch soon.
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