As a seasoned crypto investor with a keen eye for market trends and on-chain data, I’ve witnessed the intense focus on ether (ETH) over the past week. The anticipation surrounding potential approvals for ETH spot exchange-traded funds (ETFs) has sent ripples through the cryptocurrency community.
During the past week, Ether (ETH) gained significant interest from crypto investors due to heightened expectations surrounding potential approvals for its spot Exchange-Traded Funds (ETFs).
As the cryptocurrency market anticipated the SEC’s ruling on ETFs, CryptoQuant analysts noticed on-chart indicators suggesting potential large price fluctuations imminently.
ETH Demand Spikes From ETF Approval
This week, ETH experienced a significant surge, gaining 25% in just two days and reaching an peak price of over $3,900 – its highest point since mid-March. The price hike followed heightened optimism among market analysts, spearheaded by Bloomberg ETF experts, who raised the likelihood of SEC approval for these funds from 25% to 75%.
According to CryptoQuant’s analysis, traders in the Ethereum perpetual futures market and those holding the cryptocurrency permanently applied upward pressure on Ethereum prices.
Experienced Ethereum futures traders intensified their buying in anticipation of price growth following ETF approval rumors. Consequently, the open interest in the market reached its peak since early 2023, surging from 2.8 million ETH (approximately $11.7 billion) to 3.2 million ETH within hours.
In simpler terms, the ratio of Ethereum (ETH) open interest to Bitcoin (BTC) open interest increased from 54% to 67%. This surge suggests that a larger portion, 67%, of the total open positions in both cryptocurrencies is dedicated to ETH compared to BTC. This indicates a greater preference among traders for ETH over Bitcoin at the current market fringes.
As a crypto investor, I’ve noticed an interesting trend in the Ethereum perpetual futures market. Recently, there have been more buy orders than sell orders, leading to a higher demand for ETH. This imbalance is reflected in the taker buy-sell ratio, which has consistently been above one. As a result, the upward pressure on Ethereum prices has intensified.
ETH Exchange Flows Spike
The desire for Ethereum (ETH) intensified, resulting in over 100,000 ETH being held permanently by investors – the highest daily amount since September 2023 – within a 24-hour period. Additionally, the amount of ETH staked rebounded, having dropped to 32.4 million on May 20th, but now standing at 32.5 million once more, reflecting growing investor trust in Ethereum.
As interest in Ethereum (ETH) continues to grow, the asset’s daily inflows into cryptocurrency exchanges reached a peak of 62,000, marking its highest level since early March. The lion’s share of these flows were directed towards the exchanges Binance and Bybit. According to CryptoQuant, such significant exchange activity typically precedes price volatility, as investors aim to capitalize on potential price increases following ETF approval announcements.
At present, ETH was holding steady near $3,700, marking a 1% increase over the previous 24-hour period.
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2024-05-26 16:42