Top 5 Reasons Why Ethereum Price Is Rising, Rally To Sustain?
The Ethereum price has surged nearly 3% today, grabbing the investors’ attention. Notably, the Ethereum performance has further gained notable traction as its surge coincides with the downturn performance of Bitcoin price during writing. Although the Spot Ethereum ETF buzz has likely bolstered investors’ confidence, there are other reasons as well that may have contributed to the recent gains in the Ether price.
5 Reasons Why Ethereum Price Is Rising Today
Although there could be a flurry of trends and macroeconomic events that may have fueled gains in the Ethereum price today, here we discuss the top five reasons behind the surge.
Ethereum ETF Buzz
The recent regulatory approval by the U.S. SEC for the Spot Ethereum ETF last week has fueled investors’ confidence. Although the Ethereum price witnessed volatile trading last week following the approval news, the investors seem to be shifting their focus toward the second-largest crypto by market cap this week.
Meanwhile, the success of the Spot Bitcoin ETF in the U.S., which sent the Bitcoin price to its new all-time high in mid-March, has contributed to the positive sentiment. Comparing Bitcoin’s performance, the market participants now anticipate Ethereum to show a similar performance.
Pectra Update Boosts Sentiment
Ethereum’s price surged today following the recent announcement that core developers plan to roll out the Pectra upgrade by the first quarter of 2025 in a crucial execution layer meeting. Pectra, succeeding the Dencun upgrade implemented in March 2023, incorporates the Ethereum Virtual Machine Object Format (EOF) and introduces EIP-7251.
Meanwhile, this update is expected to enable individual validators to stake up to 2,048 ETH, significantly higher than the current limit of 32 ETH. Besides, this upgrade, comprising 11 improvement proposals, is expected to enhance EVM code on both Layer 1 and Layer 2 levels, potentially reducing operational complexity for validators.
Also Read: Can TON Price Recover Soon Or A Bigger Fall Is Inevitable?
Pro-Crypto Stance of Donald Trump
In a recent Telegram update, QCP Capital said that the pro-crypto comments from Donald Trump might have triggered the Ethereum price surge today. Additionally, the report also suggests that the investors are shifting focus toward Ethereum from Bitcoin, with anticipation of growing institutional demand once the Spot Ethereum ETF starts trading.
Notably, Donald Trump has recently said that he is focused on the growth of cryptocurrency firms while deeming it as a “new and burgeoning industry“. In addition, he also expressed his view towards making the U.S. as a leading player in the digital asset space.
Analysts Bullish Outlook
Several analysts have offered a bullish outlook for the Ethereum price. For context, DeFiance Capital Founder Arthur has offered a bullish outlook for the Ethereum price, saying that the Ether price could hit $4,500 before the Spot Ethereum goes live in the U.S.
In addition, crypto experts Michael van de Poppe and Rekt Capital predict a surge in Ethereum’s value, citing low altcoin valuations and impending consolidation. Van de Poppe anticipates Ethereum hitting new highs, while Rekt Capital highlights potential benefits for altcoins as Ethereum consolidates a post-ETF rally.
Meanwhile, Rekt Capital also identifies a key support level for Ethereum, suggesting a weekly close above it will confirm bullish momentum.
Whale Accumulation Boosts Ethereum Price
Today’s surge in Ethereum’s price is also attributed to significant whale activity, as highlighted by Lookonchain’s recent updates. Last week, an Ethereum whale’s strategic purchase of 8,733 ETH, followed by a $24.7 million investment in Ethereum ecosystem tokens post-SEC approval, spurred bullish sentiment.
In addition, today, another whale withdrew substantial amounts of ETH and Ethereum meme coin PEPE Coin from Kraken, totaling millions in value. With consistent withdrawals since March, the whale has accumulated significant profits, signaling confidence in Ethereum’s long-term prospects.
Price & Performance
Ethereum price has surged 2.61% and exchanged hands at $3,902.23, after touching a 24-hour high of $3,950.87 in the last 24 hours. Simultaneously, its trading volume soars over 64% to $17.85 billion from yesterday.
Meanwhile, according to CoinGlass data, the Ethereum Futures Open Interest jumped 4.45% to $17.04 billion. On the other hand, the Ether Options Open Interest rose 1.63% from yesterday to $6.38 billion.
Also Read: 4 Top Altcoins To Rally This Week
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