Ethereum price has been on a tear, blasting past the psychological level of $2,300 amid speculation of spot Ether exchange-traded funds (ETF) launching in the markets and broader market cues. The largest altcoin by market cap has climbed by nearly 15% in the past week and more than 96% in the year to date. ETH’s total market cap has increased to $282 billion over the past 24 hours, while the total volume of the asset traded over the same period increased by more than 14%.
Behind ETH’s Rally
Ethereum price has recorded significant gains over the past few weeks, consolidating within a bullish ascending parallel channel since the broader market turned bullish earlier in October. Data by Santiment has revealed that corporate entities and high net-worth investors have continued to double down on their ETH positions.
According to the prominent on-chain tracker, the top 20,000 Ethereum wallets have ramped up their buying spree this week. An increase in the supply held by top addresses is often interpreted as a strong bullish signal. This highlights a buying trend among the largest stakeholders within Ethereum’s ecosystem.
One of the key catalysts behind Ethereum’s price rally is the anticipation of the approval of a spot Ether ETF, which has increased demand and market optimism. On November 30, the US Securities and Exchange Commission (SEC) initiated the review process for Fidelity’s spot Ether ETF proposal filed earlier on November 17. This move, along with similar applications from major fund managers like BlackRock, await approval from the Wall Street regulator. The mounting interest from large mutual funds in Ether products has pumped liquidity into its market.
Additionally, the global market sentiment has also sustained ETH’s bullish rally. The crypto market has been on a strong bull run over the past few weeks amid speculation of the approval of a spot Bitcoin ETF and potential rate cuts by the Federal Reserve. The Greed and Fear Index, which measures the crypto sentiment by market participants, has edged higher to a level of extreme greed at 81. This suggests an increase in risk appetite by investors.
Ethereum Price Technical Analysis
The daily chart shows that the Ethereum price has been on a strong bullish trajectory over the past few weeks, climbing to its highest level since May 2022. The digital asset has managed to break above the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Its Relative Strength Index (RSI) edged higher to the overbought region at 71.
As such, the Ethereum price is likely to climb higher in the ensuing sessions as bulls gather momentum to flip the critical level of $2,300 into a support floor. A continuous upward trend might pave the way for further hikes to $2,500 and $3,000. However, a drop below the immediate support at $2,190 will invalidate the bullish thesis.
ETH Price Chart
